The latest report by consultant Construction Forecasting and Research (CFR) predicts UK construction output to rise 9% this year, mainly on the back of increased government spending.
The most buoyant sectors are infrastructure, health and education and public housing which are expected to deliver double digit growth each year until 2004.
Alan Armitage, CFR managing director, said: “The rise in capital budgets for transport, housing, health and education, announced in the 2002 comprehensive spending review, will provide a real boost to construction activity with all UK regions expected to benefit.”
He said the north-south construction divide would be less evident with new infrastructure projects generating considerable building activity in the north-west and Yorkshire & Humberside.
Booming house prices have made private developers increase building levels, while buoyant consumer spending is ensuring new retail construction.
Output is forecast to slow down to 7% next year and 5% in 2004, due largely to a cooling of the housing market and less demand for offices.
