Construction output is set to fall again after a brief recovery last year from the sharpest downturn in more than a generation, the Construction Products Association (CPA) said.
The association has forecast a 1% fall this year and a further 2% in 2012 as recovery in private sector construction fails to match the downturn in public spending.
“It is especially worrying that the construction industry is going to face another two years of falls in output, particularly given it is an industry that has been identified in the government’s Growth Plan as having a key part to play in the economic recovery, said CPA chief executive Michael Anders.
“Significant cuts in public spending are inevitable whilst the private sector remains cautious about the pace of the wider economic recovery and consumer confidence remains at low levels.
“Availability of finance remains an issue for many companies and the housing market is still being held back by the lack of finance available, particularly for first time buyers.”
The association has called on the governent to put pressure on institutions to make finance available and to make sure initiatives in the Budget work.