Industry set to beat the recession

Increased public spending on infrastructure and new housing has ensured that the building and construction sector is holding its own against a possible recession, according to the latest Health Check report by information provider Experian.

Figures for the fourth quarter to December 2000 place the sector in the top five most profitable industries with a 16.75% return on capital - an increase from 16.15%in the third quarter.

On average UK industry is entering a nosedive with a seventh consecutive quarterly fall in profitability. Average return on capital fell from 11.84% in the 12 months to September 2000 to 11.18%, a 15% decline in profitability across the year.

The construction sector seems to be blooming in all areas with the average profit margin rising above 6% for the first time in the final quarter. This is almost double the average margin three years ago.

The sector's debt gearing ratio remained static at 17.72%.