Excessive delays in delivering government investment plans and a sharp cooling of the UK economy could halve overall construction growth over the next two years, warns the Construction Products Association (CPA).
The CPA’s forecast for construction activity during 2001 and 2002 predicts that construction growth is dependent on the release of government funds under the Comprehensive Spending Review (CSR), given that private sector activity is expected to level off.
If this investment is forthcoming, construction will grow by 2% this year and 3% in 2002.
CPA president Roy Harrison said: ‘The additional government investment underpins a modest acceleration in construction output over the next two years. The government needs to develop and initiate specific proposals as soon as possible to ensure current planning and process obstacles are removed so that projects can be implemented within the timeframe set in the CSR.’
