The outlook for the construction industry has deteriorated sharply over the last three months according to the latest forecasts from the Construction Products Association (CPA).

According to these forecasts, output will fall by a record 16% in 2009, compared with to the April forecast, which indicated a fall of 12%. Prospects for 2010 have also declined with the Association now forecasting a further fall of 5% compared to the previous forecast which showed a fall of 3.4%.

The CPA does not now expect any significant increase in construction output until 2012 and by the end of the forecast period in 2013 the industry will have recovered only to the levels of output achieved in 1999.

-- Advertisement --

Commenting on the forecasts, CPA Chief Executive Michael Ankers said: "Prospects for the industry have deteriorated significantly over the last three months with new orders for construction work falling at a record rate. This year we expect the industry to suffer its largest fall ever experienced in a single year and with a further fall in output in 2010, output will have fallen faster in these two years than in any of the previous post war recessions.

"The impact of the recession on the construction industry has already been devastating, with hundreds of thousands of jobs lost and people with key skills leaving the industry. Manufacturing capacity has also been severely reduced and lack of skills and capacity will be a serious constraint on the pace at which the industry can recover."

(CD/JM)