The Construction Products Association (CPA) will say this week that the industry will grow less than 1 per cent this year and next – 0.6 per cent and 0.9 per cent respectively – before a bounce back to 3.5 per cent growth in 2007.
The CPA will report that slower growth in disposable income, higher mortgage rates and a cooling housing market are now tempering related construction areas such as housing, retail and leisure premises.
Overall, the construction industry is forecast to avoid recession but continued growth will be critically dependent on promised government investment, says the report.
References: The Sunday Times Business 19/06/05 page 2
