Evaluation of trends in the UK construction industry using growth and productivity accounts

For an assessment of the productivity performance of construction at the industry level, the quality of any analysis can be improved by the availability and use of detailed data on the basic components of the industry's production function. The EU KLEMS Growth and Productivity Accounts comprise a dataset that provides a rich source of information on the sources of growth by industry, one of which is the construction industry (ISIC 45), since the 1970s for European Union countries and other major economies. The database allows a breakdown of factor inputs by the categorization of capital inputs into asset types and labour inputs into components such as skill levels to provide more precise measurement of sources of growth at industry level. The UK construction sector forms the focal point of the analysis and the results of this analysis provide evidence of a steady increase in the growth of ICT and improved labour skills usage and a relatively high rate of total factor productivity for the UK construction industry.