We’re all hoping for a green Christmas
Dec 18 2009 by Chris Knox, The Journal
WITH this being the last column for 2009, I was hoping to end the year on a more upbeat note, longing to hear something more positive coming out of the dreadful recession that we have been discussing for the last 12 months.
Well, my prayers were answered when the Office for National Statistics (ONS) released figures which suggested the construction industry has been growing since June this year.
The Q3 ONS construction output data showed that outputs grew by 2% in the three months to September 30 on the back of a £1m increase in repair and maintenance work.
With a revision adding nearly £600m of new work to the Q2 2009 figures, the ONS is suggesting that the industry actually came out of recession in June.
This is fantastic news for a sector which has been one of the hardest hit. If what the ONS is suggesting is true, we are finally seeing the light at the end of a long, dark tunnel.
It means that the work that people in the industry have put into pulling themselves out of the recession is proving worthwhile, and gives a positive boost when the sector aims to push itself further next year.
For this to happen, the rise in repair and maintenance work needs to continue and I hope that the budget pressures over the next year don't put a limitation on public sector contracts.
The ONS say that they are confident in their results due to their good coverage of the industry and the size and robustness of the survey.
If the figures are a true reflection of what is happening in the sector, it is also good news for the performance of the overall economy. Whilst the construction sector accounts for only 6.3% of the national output, expectations for the fourth quarter will have to be raised following these results.
Although this news is a fantastic uplift into 2010, we cannot rest on our laurels and must remember the fears that a 'W shaped' recession may come; a double-dip for the economy matching the optimists 'green shoots' and the pessimists 'gloomy warnings'.
Well, still determined to end 2009 on a high, I won't be hoping for a white Christmas, I want these green shoots to have a fighting chance and hope that the cold frost of recession doesn't get the better of them.
For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191 383 7435 or catriona@cene.org.uk .
Catriona Lingwood is chief executive of Constructing Excellence in the North East
The data showed that outputs grew by 2% in the three months to September 30
