Activity in the industry continues to rise, but it is constrained by fears of an economic slowdown, according to reports from three industry sectors.
The RICS construction survey notes that workloads have risen for four and a half years but reports that employee expectations that they will continue to increase have fallen from 24% in the third quarter to 17% in the fourth quarter.

Regionally, Scotland is considered the strongest part of the UK market, boosted by private housing, and the Midlands is an area that has seen increasing housing and industry work.

Northern Ireland, however, has shown a sharp slowdown, because housing activity has declined.

The Federation of Master Builders' latest survey found that 46% of builders saw a rise in workload in the fourth quarter of 2000, but only 6% expected a further increase in work at the start of this year, indicating that workloads had reached a peak.

Forecasts from the Construction Products Association conclude that government investment in infrastructure is crucial to continued growth. Output is predicted to grow 2% this year and 3% next, but this relies on the release of Comprehensive Spending Review funds. Excessive delays in delivering infrastructure plans could cut construction growth.

The CPA predicts private sector work will tail off but repair and maintenance work will outpace new activity growth