Construction output is expected to shrink further in the remainder of 2008 and throughout 2009, a joint report from the Construction Products Association and Construction Confederation has said.
Heavyside manufacturers, including timber firms, have been hardest hit by the economic slowdown, recording three consecutive quarterly falls in sales volumes, according to the organisations’ Trade Survey Report.
This will contribute to this year’s GDP growth halving from the 3.1% recorded in 2007 it said.
More than two-thirds of manufacturers said poor demand will limit output growth in the next year, with 39% of contractors pessimistic about the future as order books remain sluggish.
“Clearly the chill wind that has ripped into housebuilding is beginning to blow through other sectors in the industry and contractors are reporting falls in output,” said Construction Confederation chief executive Stephen Ratcliffe.
“Maintenance of the public sector investment programme is increasingly important for the well-being of construction.”
Lightside manufacturers have been least hit by the economic slowdown according to the report, with 42% recording a growth in sales and 38% a 5% growth in sales volumes.
