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Construction drives Q3 economic growth
27/10/10
Edited by Andy Jowett.Construction made the biggest contribution of any industry to economic growth during the third quarter of the year.
Builders' output grew by four per cent compared with the previous three months, according to the Office for National Statistics (ONS).
Overall, the sector accounted for around 0.25 per cent of the 0.8 per cent rise in gross domestic product.
Commenting on the figures, the British Property Federation said this is the first quarter-on-quarter growth for construction since 2007.
Year-on-year, builders' output rose by 11 per cent in Q3, it added.
The organisation's chief executive Liz Peace said: "These are encouraging results and illustrate just how important a vibrant construction industry is to the overall UK economy."
However, she warned the sector could be held back unless the government moves swiftly to introduce the Tax Increment Financing (TIF) backed by chancellor George Osborne in the comprehensive spending review.
TIF allows councils to borrow money to fund major infrastructure or regeneration projects.
The money is then paid back through the additional business rates generated as a result of the development.
