However the industry expects to avoid recession during the current economic slow down according to the latest Forecasts from the Construction Products Association, even though this rate of growth is expected to remain at a modest 1% per annum, all the way through to 2012.

Commenting on these latest forecasts, the Association’s chief executive, Michael Ankers said:

"The economic backdrop against which these forecasts have been prepared is more uncertain than for many years and there was a time when the construction industry was the first to suffer in such a situation. What we are seeing, however, is the fall in private housing – both new build and repair and maintenance – over the next couple of years, balanced by continued growth in the commercial sector on the back of major schemes that are already underway."

Key elements of the Forecast are:

• Housing starts are expected to fall to 205,000 in 2008, but recover to 235,000 by 2012

• Output on commercial projects is expected to reach a peak in 2009 with output of £17.3bn, but fall back to £15.5bn by 2012

• Output on infrastructure projects which has declined sharply over the last decade is expected to recover strongly over the next five years with output increasing by over 25% from just under £5bn in 2007 to more than £6.5bn in 2012.

• The repair and maintenance market is expected to remain subdued throughout the forecast period, with some recovery in the private sector after 2010, offset by falls in programme of repair and improvement for the social housing stock.

• Output on public sector projects is expected to grow by 2.8%pa over the next five years, more than double the rate of growth in the private sector which is forecast to grow at just 0.3%pa