Jun 28 2006
The construction industry is recovering, but only just, as the British Government delays promised investment and private sector activity remains subdued, according to the latest industry forecasts published by the Construction Products Association (CPA).
Commenting on the forecasts, CPA Chief Executive Michael Ankers said: “The construction industry is recovering only slowly, having suffered its first fall in output in a decade during 2005. Output is now forecast to grow at only 0.6% this year as the recovery in public spending remains very slow and private sector activity remains constrained by the slow down in consumer spending.
“The present deterioration in public sector finance and the slow delivery of key Government programmes are now expected to constrain the recovery in public sector investment, with health related expenditure especially vulnerable near term as NHS trusts struggle with record deficits.
“Faltering consumer confidence and a subdued housing market are forecast to dampen both new private housing output and repair, maintenance & improvement work this year. Looking further ahead, we expected to see more substantial growth in construction output during 2007 and 2008 at around 2.8% per annum. However, while recent industry growth has been largely driven by higher Government, the rising private sector activity is forecast to be increasingly the engine for growth over the next three years.”