23/12/2009 - Construction product sales falling
The construction activity showed a downward trend in the last quarter of the year, even though the rate of decline has slowed in the sector .
According to the Construction Activity Barometer of the Construction Products Association, produced in collaboration with Ernst and Young,sales of construction products stood at 29 in the fourth quarter of 2009.
The figure is positive compared with the third quarter results of just 12 and zero recorded in the first half of 2009.
Despite improvements, the increase in the construction activity does not indicate growth, as a score of 50 means no change in the sector.
Noble Francis, economics director at CPA, said: "This latest figure of 29 is a marked improvement on the figures seen in Q2 and Q3. Looking forward, product manufacturers expect the decline in sales to continue into the New Year."
He added: "With private sector construction still anticipated to be weak, and December's Pre-budget Report indicating that Government spending is expected to fall sharply over the next four years, it is critical that the Government does not cut spending in housing, education and transport infrastructure that is vital for long-term economic recovery."
Copyright © Press Association 2009
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