The construction industry faces slower growth during the next three years despite higher government spending, according to the Construction Products Association‘s (CPA) latest forecasts.
Michael Ankers, CPA chief executive, said private sector activity would “stall” in the next three years. He warned the government to use its spending review in July to deliver promised investment to sustain the industry.
Overall construction growth is predicted to slow this year to 3% and to 1% in 2005 before rising again to 1.5% in 2006.
New housing growth is expected to fall to 9.8% this year from 11.8% in 2003. But in 2005 no growth is expected.
