A sharp fall in private sector construction growth is predicted during the next three years.
In its latest industry forecast, the Construction Products Association (CPA) says weaker private sector activity will cut back overall construction growth from 8% last year to just 1.9% in 2003. It then expects growth to fall to 1% in 2004 before rising to 1.1% in 2005.
CPA chief executive Michael Ankers said: “A cooling in the general housing market and slower house price inflation is set to pull back private housing starts from 167,000 this year to 155,000 in 2005, and slow the growth in home improvement works.”
Private commercial and retail and leisure construction activity is also expected to fall in the next two years, leaving the industry dependent on government investment plans for growth. Public sector growth is predicted to go up by 6.3% this year before slowing to 5.7% in 2004 and 4.3% in 2005.
