CPA forecasts accelerated growth

"THE Construction Products Association’s latest forecast for construction output over the next three years points to higher government investment as being the main engine driving construction activity. Output this year is forecast to increase by just 1.4%, but rise by 2.8% in 2002 and accelerate further to 3.5% in 2003 — the first time industry output has been forecast to increase at a higher rate than GDP since the late 1980s."

"Increasing investment in infrastructure and public sector repair and maintenance are said to be the main drivers behind these increases, and while there is likely to be less rapid growth in the commercial sector, the forecast shows modest recoveries towards the end of the period in private sector housing and industrial output."

"Commenting on the forecasts, CPA chief executive Michael Ankers said: ‘Once again government investment has failed to live up to announcements made in previous spending plans. Following its re-election, the Labour Government has commited itself to ‘delivery’, and the industry’s prospects over the next few years are critically dependent on this….it is vitally important that planning delays and other bureaucratic obstacles do not hold back this additional investment.’"

"The announcement that the construction industry’s sponsoring department is to be transferred from the Department of the Environment, Transport and the Regions to the Department of Trade and Industry has been welcomed by the CPA. External affairs director Jean Emblin commented: ‘We had been pressing for such a move in the run up to the general election and are obviously pleased with the news, which we believe will give a greater industry focus to our sponsorship in government.’"