FMB warns that construction is still in recession

The Federation of Master Builders (FMB) has warned that the building industry is still in recession despite the ONS figures confirming that the UK has just come out of recession. Figures from the FMB’s State of Trade Survey, the only survey of SMEs in the construction industry, for the last quarter of 2009 reveal that 44% of FMB firms expect their workloads to decline in the first three months of 2010. Only 18% of FMB firms expect their workloads to increase.

Richard Diment, Director-General of the FMB said:“The UK has barely just by the skin of its teeth come out of recession and for the building industry it continues to suffer. A staggering 33% of FMB firms expect to make staff cuts in the first three months of this year.”

Diment added:“The Government really must do more to support the construction sector because without its help the UK will continue to lag behind our European neighbours. Investment in the construction sector really does offer the best hope of propelling this country back into recovery because every £1 spent on construction output generates a total of £2.84 in total economic activity. Any cuts in construction would merely cripple an already badly damaged skills base and supply chain and seriously inhibit the building industry’s recovery.”