The construction industry will suffer a 2% decline in activity next year, according to a new forecast.
The Construction Products Association (CPA) forecast also predicts a further fall in 2012, with growth not now expected until 2013.
Private housing starts are forecast to grow 5% in both 2011 and 2012 but public sector construction is expected to fall 9% in each of the years. The commercial sector is to rise 20% between 2009 and 2015.
CPA chief executive Michael Ankers said the rise in private sector construction investment over the next two years was unlikely compensate for sharp falls in public sector work.
“By 2013, however, we expect to see strong growth in the commercial sector, combined with increasing construction activity related to housing, rail schemes and the development of energy infrastructure, leading to a recovery in construction output at the end of our forecast period,” he said.
