Impact Of The Construction Sector On The Uk Economy Essay

â€Å"The construction industry is a sector of the national economy engaged in preparation of land and construction, alteration, and repair of buildings, structures, and other real property† (BusinessDictionary, 2016). This sector in recent years has experienced declines in growth and has growing tendencies of entering a recession. It has to be recognised that it is an extremely volatile industry which has adverse effects on macroeconomic objectives some of which includes economic growth and unemployment. This sector also affects aggregate demand and aggregate supply; all of which will be analysed and evaluated in conjunction with diagrams and the impact that they have on the economy in general. In addition to this, the effects that this sector has on the housing sector will be analysed. These areas will be critically analysed and evaluated to demonstrate the impact that they have on the economy in general. Downfall within the construction sector is detrimental to the UK economy, due to it being one of the largest industries in the UK. â€Å"This can be illustrated by the accounting of approximately  £110 billion per annum of construction output and 7% of GDP†. (Designingbuildings, 2016). This results in a knock on effect on the housing sector because it is a large part of the construction sector. HOUSING SECTORThe construction industry is usually funded by savings and borrowing, effects of the decline can be shown clearly by the housing sector, the largest sector in theShow MoreRelatedThe Role Of Governments Play An Important Role Of Business Innovation1296 Words   |  6 Pages ‘Governments play an important role in business innovation.’ Discuss in relation to two sectors. Introduction It is a common notion that it is primarily the private sector that drives innovation and economic growth, while the government, at best, plays only organization role in ‘fixing market failures’. 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