Construction recovery stalled to 2013
Construction industry growth will be delayed a year by public spending cuts, latest forecasts from the Construction Products Association have revealed.
The forecasts from the Construction Products Association said industry output would decline 2 per cent in 2011 compared to 2010 with a further fall in 2012.
A small growth in private sector construction work of 5 per cent will not be enough to compensate for a 17 per cent drop in public sector work.
However by 2013 the commercial sector is expected to grow strongly, rising 20 per cent from 2009 to 2015. Rail construction will double and energy construction will treble by 2015, and private housing starts will grow 5 per cent in both 2011 and 2012.
Construction Products Association chief executive Michael Ankers said: “The increase in construction output in 2010 has been an important component of the growth in GDP over the last two quarters. Unfortunately, these latest forecasts show that construction is unlikely to provide the same impetus over the next two years and this will almost certainly slow down the rate of growth in the wider economy.”