Construction output will not reach peak 2007 levels again until 2021, according to the Construction Products Association’s (CPA) latest forecast.
The CPA expects output to fall 15% this year, with a further 2% dip in 2010, before modest growth returns in 2011.
CPA chief executive Michael Ankers said private housing was beginning to pick up, with starts expected to reach 80,000 in 2009 and projected to hit 148,000 in 2013. But he emphasised that recovery would be slow.
“Government spending on construction projects in the short term remains strong and without this the industry would be in a far worse position,” he added.
“We remain very concerned that any significant cut-backs in capital spending after the election will prolong the downturn as it will be some time before we expect to see significant growth in private sector commercial projects.”
The CPA sees infrastructure as a bright spot, but fears post-election spending cuts will hit school and hospital projects.
