The construction industry is set to enjoy sustained growth over the next three years, matching that of the UK economy, according to the Construction Products Association’s summer forecasts.

However, an anticipated cooling in the housing market, together with poor delivery of planned investment by the water industry and the Highways Agency will constrain growth, especially during 2008.

Speaking on behalf of the Association, Economics Director Allan Wilen said: “The industry’s prospects remain bright as Brown moves into Number 10. After two lean years, industry growth is expected to quicken and to be more broadly based.

"Yet this growth will not be uniform across all sectors. Higher interest rates are expected to temper both new house sales and home improvement work over the next two years. In addition, the pick-up in infrastructure output is forecast to be slower than previously anticipated, due to slippages in both water industry investment and the letting of major road schemes. Nether the less, there is increased confidence that things are looking better and we forecast that construction industry growth with strengthen to 3.1% this year."

Source

Electrical and Mechanical Contractor