British construction slow-down expected to change with budget

There was further evidence of a slow-down in the British construction sector today, as official government figures showed orders sliding 12% in the three months to end-January compared with the same period a year ago.

The Department of Trade and Industry said a continued decline in infrastructure and private commercial orders were mainly the cause of the year-on-year decline, while private housing orders were little-changed.

But, compared to the previous three months, orders were 6% higher, with all sectors showing improvements except public non-housing.

The figures come in advance of next week's budget, in which British Chancellor Gordon Brown is expected to announce a series of measures to boost construction, especially in the housing market.

Last year, the Barker review of the sector found that the supply of housing in the Britain is held back by the industry's lack of incentives to build new homes, as well as rigidities in the planning system.

The review by Kate Barker, a member of the Bank of England's rate-setting Monetary Policy Committee, found that the main constraint to house building identified by the review is land supply.