CFR’s findings coincide with a report produced by credit agency Experian showing that construction was one of only four UK industrial sectors out of 23 analysed that increased in profitability in the last quarter of 1999.
The studies contradict industry fears that construction growth would slow with the completion of millennium projects.
The main growth area identified in the CFR survey was the public sector repair and maintenance market, but CFR also predicted increased levels of work in private housebuilding, commercial construction, infrastructure and other public sector markets, such as education.
The survey said government initiatives outlined in the Comprehensive Spending Review should result in an increase of at least 16% in public sector repair and maintenance work over the next two years.
Private housebuilding is expected to increase by 4% in 2000 and a further 3% the following year. In the three months to February 2000, housing starts showed a slight increase over the same period a year earlier.
However, the study also noted that public sector housing work is expected to drop 4% during 2000.
The survey added that commercial construction had increased in the three months to February 2000, up 13% on the previous quarter and up 8% on the same period a year ago. CFR predicted that infrastructure would peak in 2000 with a 4% increase, followed by a slight decrease the following year.
Infrastructure work increased 6.5% during the last quarter, up 9% on the same period last year. It is predicted to rise 2% this year and 4% in 2001.
