NewsJanuary 16, 2012
Construction activity will drop by 5% in 2012, says CPA
Construction activity is set to endure a drop of more than 5% in 2012, according to the Construction Products Association. In its latest of ‘Construction industry forecasts 2012-2015', it predicts that activity will ‘remain subdued' throughout 2013, before a return to growth in 2014.
Although the government's Autumn Statement in November heralded a £4.7 billion ‘boost' for construction, capital investment will still fall 30% by 2013/14, the CPA stresses. ‘Furthermore, 85% of this "boost" will not be available between 2010/11 and 2013/14 and, as a consequence, is unlikely to have a significant impact in the next 18 months. As a result, public sector construction is still set to fall 20% between 2010 and 2014 as work completing on the 2012 Olympics coincides with falls in workloads in education and health facilities of 35% and 40% respectively over this same period.'
Although total housing starts in 2012 will represent less than half what is needed to meet the number of households created and public sector construction work will fall by 18% between 2011 and 2014, there is some good news:
- Private sector construction work to rise by 14% by 2015
- Rail construction set to almost double by 2014
- Energy construction set to rise threefold by 2015
TRADA members only may view Market Trends in full - click here
Recent Stories:News stories are listed in order of relevance.
|
