Construction growth but not till 2014

Published:  14 January, 2013

Building activity is not expected to grow until next year says the Construction Products Association (CPA). Construction output is forecast to fall by more than 2% this year, according to its latest forecasts published on Friday. But private house building is expected to grow 6% in 2013.

Noble Francis, CPA economics director, said: "Unfortunately, growth from the private sector, which government hoped would compensate for this decline in public sector activity, has not materialised and it too continues to contract."

Adding to the gloomy picture, figures released on Friday by the ONS for construction output in November, show there was a 3.4% decline month-on-month and a 9.8% decline from the same period a year ago, with the industry having lost £8bn of work in the past twelve months.

"With new orders for construction falling significantly at the end of last year, 2013 is going to be a difficult year for the construction industry with output forecast to fall 2.2%," Mr Francis said.

Construction Products Association forecast:

  • Housing starts in 2013 forecast to be 122,000, which is fewer than half that needed to meet the number of new households
  • Activity in the commercial sector, the largest sector of construction, to fall 5.7% in 2013
  • Retail construction output to fall 10% in 2013
  • Output in education construction to fall 9.8% in 2013
  • Health construction output to fall 8.7% in 2013
  • Roads construction output to rise 8% in 2013 following 45% fall in 2012.

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