Significant positive growth in the construction industry is only expected in 2012, according to latest industry forecasts from the Construction Products Association (CPA).

Despite some indicators predicting construction is beginning to turn the corner, the CPA said forecasts pointed to a 12% fall in construction output during 2009 – the worst on record, followed by a further fall of 3.4% in 2010.

By the end of the forecast period – 2013 – construction output is still expected to be below levels experienced in 2002.

The CPA anticipates new housing starts will fall to 70,000 this year, the lowest number since 1924. Public housing starts are anticipated to fall 20% during 2009.

The commercial sector has slowed considerably since autumn 2008 and output over the next two years is expected to fall 53% in the new build office market and 40% in new retail construction.

Positive growth is expected to be seen in publicly funded areas such as education, health and rail.