Article Abstract:
The possibility of a UK economic recession appears not to be worrying the construction industry, which believes the run up to the Millennium will continue to be a boom time, especially for housebuilders. The economy slowed to an output growth of 0.4% during the first quarter of 1998, leading to the possibility of increased interest rates which would have a serious detrimental affect on construction. The strength of pound sterling against foreign currencies is leading exporters to suggest the recession could be hastened as the private industrial sector becomes financially unstable.
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Article Abstract:
The UK Treasury has acknowledged that the country's prosperity is being placed in danger by low levels of capital spending. In its policy document 'Fiscal Policy: Current and Capital Spending,' the Treasury states that public investment has declined, both as a share of public spending and as a share of investment spending. The construction industry has welcomed the fact that the government has acknowledged this problem, and feels that it could benefit from moves to increase public investment, especially in hospitals, schools, transport and housing.
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Article Abstract:
The UK construction industry will probably be negatively affected by the general slowdown in the world economy. Indeed, UK contractors are already beginning to experience the repercussions of economic crisis in Asia. For housebuilders, recent interest rate rises have led to a slowdown in sales. There are no signs yet of a sharp decline in construction activity, but confidence is waning. Even construction companies that diversify may not be totally insulated from the effects of economic slowdown.
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