Fall in house builds affecting construction

Posted: 09 Mar 2009 11:00:59 GMT

The Office for National Statistics (ONS) has published figures which show a distinct fall in the number of new homes built at the end of 2008.

Compared to the previous three month period, the fourth quarter of 2008 saw a seven per cent drop in total construction figures, the ONS research revealed on Friday (March 6th), with falls in residential figures the largest contributing factor.

Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors, believes that the figures show that the fall in construction is set to contine this year.

He said: "Production dropped seven per cent compared with the previous three month period and was 8.5 per cent down on the high watermark reached in the first quarter of 2008.

"New orders data for the sector suggests that construction output is set to fall further over the course of 2009."



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