The construction industry is set to enjoy sustained growth over the next three years, predict the Construction Products Association.
“The industry’s prospects remain bright as Brown moves into Number 10,” says Allan Wilen, economics director of the association. “After two lean years industry growth is expected to quicken and to be more broadly based.”
However, he added that this growth would not be uniform across all sectors. Higher interest rates were expected to temper both new house sales and home improvement work over the next two years. The pick-up in infrastructure output is also forecast to be slower than previously anticipated.
The association forecasts that construction industry growth will strengthen to 3.1% this year, slow to 1.8% next year but rise again to 3.1% in 2009.