The construction industry is still in recession and if it remains so, recovery for the economy as a whole will be slow, the Construction Products Association (CPA) says.
Although the latest GDP figures indicated continuing recovery in the economy with 0.2% growth for the first quarter, the construction industry lagged behind.
The CPA forecasts a 3% fall in construction activity this year, following last year’s 12% decline – the worst in more than 35 years. It is anticipated that by the end of 2010, the construction industry will have lost £61bn worth of work in just three years.
Growth is not expected to return until 2011 and then it will be just 1% per year until 2013.
However, on a positive note, the CPA predicts that private housebuilding will grow by 32% between 2010-2012.
