Britain’s trade deficit has increased to a 5 month high in June demonstrating there is still some way to go before we see a properly balanced economic recovery; however the construction industry figures look much more positive.

British exports to countries not in the European Union have fallen to their lowest since the latter half of 2011 and coinciding with the pound attaining a close to six year high against the dollar.

There had been high hopes for the country’s exports which many had hoped would soon help to make a more significant contribution to the UK’s more consumer focused economic recovery however data from the construction industry and recruitment to our industry points to significant demand for the industry.

The Bank of England - which will release updated economic forecasts next Wednesday - expects that pace of growth to slow slightly later this year.

Overall construction output - which accounts for just over 6 percent of the British economy - rose by 1.2 percent in June after falling by the same percentage in May. Year-on-year growth rose to a three-month high of 5.3 percent from 3.9 percent in May.
Still, construction output is 10.3 percent below its level in the first quarter of 2008, before the financial crisis.

"We expect (the improvement) to continue, particularly as the housing market now seems to be shaking off the effects of tougher mortgage rules, with loan approvals rising 8 percent in June," said Rob Wood, economist at Berenberg.