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Construction work decline to be worst in three decades

The construction industry is facing the worst decline in activity for 30 years, with activity unlikely to return to growth until 2014, according to new forecasts published by the Construction Products Association (CPA).

CPA chief executive Michael Ankers said the private sector-driven recovery from government spending cuts that was hoped for has not materialised.

“Our latest Forecasts indicate that construction output will fall by more than 1% this year, a further 3.6% next year and have no growth in 2013,” said Ankers. “Recovery finally arrives in 2014, but by then we will have experienced the worst decline in construction activity for more than 30 years. It is essential that more is done by government to kick start the economic recovery.”

Ankers called for the government to stimulate recovery by rebalancing the economy between current and capital spending, doing more to stimulate house building and to support the Green Deal programme. Since the start of the economic downturn in 2007 more than £32bn of construction activity has been lost, the CPA said.

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