CBI: Confidence returning to construction
The latest growth forecasts from the Confederation of British Industry (CBI) have been improved as a result of growing confidence across a range of important sectors, including construction, manufacturing and services.
According to the organisation's latest forecast for gross domestic product (GDP) growth, the UK economy is now set to increase by 1.2 per cent in 2013 - raised from previous estimations of an upturn of one per cent.
Furthermore, the CBI believes economic recovery will gather pace over the following months, with 2014 expected to witness an overall 2.3 per cent rise in GDP for the UK - a figure also increased from previous predictions of two per cent.
John Cridland, CBI director-general, said: "The economy has started to gain momentum and confidence is picking up, but it's still early days.
"We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery. We hope that will begin to emerge next year, as the eurozone starts growing again."
Unemployment is expected to stand at 7.8 per cent by the end of the year is expected to reduce by a further 0.2 percentage points by the end of the following year.
This could be good news for the UK construction sector in particular, as improvements in the UK's economic position will hopefully lead to an increase in lending for new builds - something many areas of the country are currently crying out for due to the ongoing acute housing crisis.
It follows positive comments from communities minister Brandon Lewis, who earlier this month revealed the level of house building up and down the UK has now rebounded following the considerable fall in new build projects that reached its nadir in March 2009.
Indeed, seasonally adjusted housing starts are now 73 per cent higher than this point and look set to continue to improve over the coming months as a number of government-funded initiatives drive the sector towards recovery.
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