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Construction 'will not see growth until 2013'
07/12/10
Edited by Andy Jowett.Builders will see the construction industry's growth stall in 2011 and 2012, according to a new report.
The study by the Construction Products Association (CPA) shows output is expected to fall by two per cent next year compared with 2010.
Furthermore, the figures indicate that the expansion of the private sector will not be strong enough to counterbalance the impact of cuts in the public sphere.
The CPA said that although construction of private residential property is forecast to grow by five per cent over the next two years, state-backed workloads are expected to decline by 17 per cent.
Nevertheless, the association predicted that from 2013, there will be "strong growth" in commercial construction, as well as a pick-up in housing, rail and energy infrastructure schemes.
CPA chief executive Michael Ankers said building activity has been an "important component" in the growth of the UK's gross domestic product since March.
"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," he added.
According to the latest government figures, builders started work on 25,870 new homes in the third quarter, down nine per cent on the previous three months.
