UK construction output is forecast to fall by more than 5% next year and remain flat throughout 2013 according to the latest forecasts published by the Construction Products Association.

In a bleak assessment of prospects for the sector, which has an annual turnover of £50 billion and accounts for 40% of total construction output, the Association says it will be 2014 before the industry is expected to see any significant signs of recovery, by which time output will be 12% lower than at its peak in 2007.

Public sector construction is predicted to fall 18% between 2011 and 2014.

However, on a more optimistic note, infrastructure construction and energy construction are expected to rise 20% and to increase threefold respectively by 2015.

Commenting on the forecasts, Michael Ankers, Chief Executive of the Construction Products Association, said:

‘For the construction industry to return to growth there needs to be a strong private sector recovery, but this is just not happening. Continuing uncertainty about the future of the euro zone and a lack of consumer confidence in the UK are holding back important investment decisions. As a result the largest area of construction activity - private commercial work- is forecast to fall by a further 5% in 2012 and remain at that level in 2013.

‘At the same time the cuts in public sector construction activity are really beginning to bite, with construction work on schools, hospitals, and other non-housing work forecast to fall by 23% compared with 2011. Despite the encouraging announcements on public sector investment on infrastructure projects in the Autumn Statement, capital spending on construction will still fall 30% by 2013.”

 

 

 

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