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[January 2001]
Higher public sector investment key to construction growth forecast
Higher government investment in the built environment will be central to sustained growth in construction activity during 2001 and 2002 according to forecasts published today by the Construction Products Association.
The base forecast for the next two years anticipates that:
The release of Government funds under the Comprehensive Spending Review will sustain construction growth over the forecast period Private sector activity will level off as UK economic growth slows Repair and maintenance work will outpace the growth in new construction activity New house construction will remain constrained as much by protracted planning delays as weaker demand Overall construction output is forecast to grow by 2% this year and 3% in 2002
The Association warns, however, that excessive delays in delivering government investment plans and a sharper than anticipated cooling in the UK economy would significantly cut construction growth, possibly even halve overall construction growth in the next two years.
Commenting on the forecasts, the Association’s President, Roy Harrison said: "The anticipated rise in public investment is long overdue. For decades the UK has invested a smaller proportion of GDP in the built environment than other European countries and the adverse effect of this on the competitiveness of UK business and our quality of life has become only too apparent. This additional funding will start to address past under-investment in important areas including the transport infrastructure, social housing, hospitals and school buildings".
"The additional Government investment will underpin a modest acceleration in construction output over the next two years, coinciding as it does with an anticipated levelling off in private sector activity. However the government needs to develop and initiate specific proposals as soon as possible both to ensure that current planning and process obstacles are removed and that projects can be implemented within the timeframe set in the CSR".
ENDS
THE CONSTRUCTION PRODUCTS ASSOCIATION:
The Construction Products Association represents the UK’s producers and distributors of construction products, components and fittings. It acts as the voice of the construction products sector, representing the industry-wide view of its members. The Association is committed to demonstrating the importance of a growing, profitable and sustainable construction products sector within the UK economy.
FURTHER INFORMATION CONTACT:
Allan Wilén / Jean Emblin
Construction Products Association
Tel: 020 7323 3770
Fax: 020 7323 0307
E-mail:awilen@constprod.org.uk / jemblin@contprod.org.uk