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Construction output continues to fall

The construction industry is set to see a continuing fall in output until 2011 despite wider signs that the economy is recovering

According to the latest forecasts from the Construction Products Association, construction output will fall 15 per cent his year and a further two per cent in 2010.

CPA chief executive Michael Ankers said: ‘There are signs that the private housing market is beginning to pick up although the recovery is expected to be slow and from historically very low levels.

‘However, even with this new optimism the total number of houses expected to be built in the two years 2009 and 2010 will only equal the number built in the year before the credit crunch.’ 

The forecast also found that spending in schools and health will continue to be strong until 2010, but will tail off in 2011/12.

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