The construction sector is set for a dramatic fall in growth in 2005, according to a report published today by the Construction Products Association.

The report predicts that output growth will fall from 3.2% in 2004 to 0.8% in 2005, dragged down by a drop in private sector activity.

However, CPA chief executive Michael Ankers said: “The message is that there will be a dramatic slowdown, but recession will be avoided.”

According to the CPA, the biggest slowdown in output growth will be in the housing sector, down from 14.2% to 7.5%.

It predicted that the repair, maintenance and improvement sector will also be badly hit.

Ankers said that although growth in public sector work would be moderate, it would be the main driver behind housing growth.