Construction Products Association reports weak second-quarter growth and dependency on government work.

Construction output growth was weak in the second quarter of 2005 and “critically dependent” upon government work, the Construction Products Association said today.

In its latest survey, the Construction Products Association described growth as “lacklustre” and said that private sector work and in particular housing activity had slowed.

During the second quarter both manufacturers and contractors faced increased pressure on margins because of rising costs of materials and labour. The highlight during the period was public sector building work, which, as well as industrial work, drove the growth.

The CPA’s survey said: “In contrast, stalling consumer spending and a weakening housing market are taking their toll on contractors. In addition, civil engineering contractors’ output slipped back during the quarter.”