Latest Construction Trade Survey says 2010 will be marked by rising material and energy costs and declining orders

The UK construction industry won’t begin to recover until 2011 at the earliest says the latest Construction Trade Survey published today.

According to the report UK construction saw a continued decline during the final quarter of 2009.

Furthermore, with rising material costs and increasing fuel and energy prices, coupled with decreasing orders and enquiries, the environment for construction throughout 2010 is likely to deteriorate even further, delaying any recovery in the sector for at least another 12 months.

The continuing decline in workloads across the construction industry is of great concern

Noble Francis, Construction Products Association

Noble Francis, economics director at the Construction Products Association, said:“The continuing decline in workloads across the construction industry is of great concern, especially given that the situation has been exacerbated by rising energy and raw materials costs.

"This, combined with falling tender prices, is placing increasing pressure upon an industry that has now been in decline for two years”.

He added that the chancellor’s confirmation in December 2009 that public spending on construction will fall by more than 50% during the next four years only provides more concern for the industry following last year’s sharpest fall in construction on record and risks delaying any potential recovery in 2011.