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Wednesday Jul 28
The latest Construction Activity Barometer is giving the sector reason to cheer as signs of a revival start to show.
The report issued by Ernst & Young and the Construction Products Association shows those sales of construction products rose significantly during the second quarter of 2010, although it is noted that the comparison is drawn against 12 months ago when sales were at a historic low.
"This latest survey illustrates that the situation is substantially better than it was one year ago," says Noble Francis, Economics Director for the CPA, "but with major public spending cuts looming, manufacturers fear that sales will fall once again.
"With government capital expenditure set to be cut by £100 billion over the next five years there is a real danger that any recovery will be delayed. This would seriously impact upon manufacturers and suppliers of construction products, holding back a return to growth in the wider economy."
Against this backdrop, the majority of construction products manufacturers say they expect their sales to continue to rise in the third quarter, compared with the same quarter one year earlier.
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