Recession off - Construction turns around

StevieJ

The main drag on GDP in Q4 seems to have made a turnaround and with manufacturing still doing well my guess is for a positive GDP figure in Q1. Then again the cuts could still put the economy under severe pressure for the rest of the year, 2011 is going to be pivotal year.

LONDON (Reuters) - Construction activity returned to growth in January, helped by better weather and a rise in new business, the monthly Markit/CIPS purchasing managers index showed on Wednesday.
The figures indicate the sector made a strong start to 2011, and come a day after an equivalent survey of manufacturers showed activity growth hit a record high, suggesting the economy is rebounding from a shock 0.5 percent fall at the end of 2010.

http://uk.finance.yahoo.com/news/Construction-activity-bounces-reuters_molt-188674523.html?x=0

Blacklight

That and the extra £200bn they'll shove in tomorrow to make sure the BBC can't wind people up to the point of civil unrest come Q1 GDP figures.

Jonbvn

StevieJ how will you and Ed manage without any negative news on the economy?

http://www.spectator.co.uk/coffeehouse/6663653/treading-the-road-to-recovery.thtml

It will have been a quiet morning in the Balls household. Fresh economic indicators suggest that the British economy is not in some cuts-induced recession but, instead, doing rather nicely, thank-you.

Generali

StevieJ wrote: »

The main drag on GDP in Q4 seems to have made a turnaround and with manufacturing still doing well my guess is for a positive GDP figure in Q1. Then again the cuts could still put the economy under severe pressure for the rest of the year, 2011 is going to be pivotal year.


http://uk.finance.yahoo.com/news/Construction-activity-bounces-reuters_molt-188674523.html?x=0

Time will tell as ever but it seems dumb to suggest that the UK coming to a halt for a week or so (as it appeared to from over here anyway) would have no impact on GDP. Those suggesting that the single negative reading for GDP was solely down to Government spending cuts being announced (not even enacted for the most part) are most likely wrong. The cuts may or may not have an impact in future but economies don't just come to a stop because the Chancellor announces your local hospital is going to close.

Similarly, Australia's GDP will be hit by the flooding and now this terrible cyclone. That doesn't mean the economy is knackered, it means that nature has disrupted things.

Graham_Devon

But I thought the cuts that the nasty tories were making were going to drag us into a deeper recession?

Now the recession if off due to one sector?

Generali

Graham_Devon wrote: »

Now the recession if off due to one sector?

It's a big labour intensive sector with output for 2010 likely to come in around £100,000,000,000.

http://www.statistics.gov.uk/statbase/Product.asp?vlnk=725

Thrugelmir

Service industries (Restaurants, Pubs etc) suffered badly during the bad weather.

1st Quarter post Christmas break is notoriously quiet in the sector. So unlikely that there will be an improvement.

StevieJ

Jonbvn wrote: »

StevieJ how will you and Ed manage without any negative news on the economy?

http://www.spectator.co.uk/coffeehouse/6663653/treading-the-road-to-recovery.thtml

Very well thank you, provided the good news is worldwide my share portfolio should grow nicely

StevieJ

Graham_Devon wrote: »

But I thought the cuts that the nasty tories were making were going to drag us into a deeper recession?

Now the recession if off due to one sector?

Rochdale_Pioneers

Well I hope you are right - another recession will knacker a lot of people I know.

Construction building what though?

shortchanged_2

Rochdale_Pioneers wrote: »

Well I hope you are right - another recession will knacker a lot of people I know.

Construction building what though?

Many of them have been employed to fill all the potholes in the roads after the cold and snowy weather.