The British construction industry faces a bleak two years with output activity predicted to drop in the wake of sharp public spending cuts and an easing of building work in the private sector, according to a report.
Construction forecasting firm Hewes & Associates said industry output was likely to decline by 3.5 per cent in 2011 and 5 per cent in 2012.
It said that of the near £8 billion estimated growth in new work last year, almost 65 per cent was attributable to the public sector. This is going to be stripped away by the cuts outlined in the Comprehensive Spending Review.
Social house completions are expected to decline from an estimated 28,000 in 2010 to 17,000 in 2012.
Marginal growth is forecast for 2013, by which time the analysts predict output of £104 billion - £8.9bn below that estimated for 2010.
“The forecasts deliver a dour message of renewed decline in construction activity alongside a near static economy,” the Construction Outlook report said.
“Our concern is that the public spending restraint planned from March 2011 will not be offset by private sector growth.”