Output growth in the UK’s construction industry is forecast to slow to less than 1% in 2005-06.
The Construction Products Association (CPA) says weakening economic conditions are likely to hit private sector construction activity during the next two years.
CPA chief executive Michael Ankers said: “In particular, slower growth in disposable income, higher mortgage rates and a cooling housing market are now tempering related construction areas such as housing, retail and leisure premises.
“Overall the construction industry is forecast to avoid recession, but continued growth will be critically dependent upon the delivery of promised government investment.”
The CPA forecasts new housing growth to slow to 1.7% this year from 14.1% in 2004, with public non-housing work slowing to 2.5%. Repair, maintenance and improvement work on private housing is predicted to see a 4.5% decrease in 2005.
