The construction sector contracted by 0.5% in the last quarter of 2011 and a further fall of 5.2% is expected over the course of 2012, according to the Construction Products Association (CPA).
“Undoubtedly the problems in the eurozone have increased uncertainty in the private sector, making investors highly risk averse to investment,” said Noble Francis, CPA economics director.
“However, this does not tell the whole story as capital investment from the public sector, which accounts for more than one-third of total construction activity, will have fallen 30% by the end of 2013.
“As construction has been highlighted by government as essential for recovery, the decline is severely harming prospects for the sector as well as constraining overall economic growth.”
