Britain’s economy will grow at a slower pace this year and faces serious risks from weak productivity and a troubled euro zone, a leading think-tank has warned. That’s what most articles these days are complaining and reporting to the public.
The troubles of the construction industry were underlined in a closely watched business survey suggesting that the second quarter kicked off with a sharp slowdown in activity and new work. For us, that is not a “new” issue in the side of the construction companies. It is well-known even from the beginning of the industry. That is why everyone should be careful on what they are issuing about when it comes to construction news and update.
Construction and manufacturing remain below their pre-crisis strength and NIESR, like other forecasters, expects most of the momentum for growth this year to come from consumer spending. The biggest single uncertainty facing the UK economy was how quickly productivity can be improved. Prices of both food and other goods were lower than a year ago. Non-food prices have been falling for 25 months in a row while food prices have fal