Construction output grew by 0.5% in the second quarter following two consecutive quarters of contraction.

The growth was against a background of a 0.2% overall UK GDP growth announced today.

Michael Ankers, chief executive of the Construction Products Association (CPA), said the figures showed that private sector construction growth had finally begun to recover, while public sector construction output remained “stronger than we had anticipated”.

However, he tempered any optimism by saying that the impact of public sector spending cuts was still to be felt and forecast sharp falls later this year.

The CPA is forecasting constuction output to be slightly lower in 2011 than last year, with 2012 to be 2.5% lower still.

Construction work is focused on the south-east and greater London, while work in other parts of the country is reducing more quickly.