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[June 2001]
Construction Products Association Forecasts Accelerated Growth
The Construction Products Association's latest forecast for construction output over the next 3 years, published today, points to higher Government investment as being the main engine driving construction activity. Output this year is forecast to increase by just 1.4%, but rise by 2.8% in 2002 and accelerate further to 3.5% in 2003 - the first time industry output has been forecast to increase at a higher rate than GDP since the late 1980s. Increasing investment in infrastructure and public sector repair and maintenance are the main drivers behind these increases.
Commenting on the forecasts, the Association's Chief Executive, Michael Ankers said: "Once again Government investment has failed to live up to announcements made in previous spending plans. Following its re-election the Labour Government has committed itself to 'delivery' and the industry's prospects over the next few years are critically dependent on this.
"What needs to be realised is that it is more than just making money available, and it is vitally important that planning delays and other bureaucratic obstacles do not hold back this additional investment."
Whilst there is less rapid growth in the commercial sector, the forecast also shows modest recoveries towards the end of the period in private sector housing and industrial output.
ENDS