'Two percent growth over next two years'

Growth in construction is set to grind to a halt over the next two years, a major new survey has forecast.

As the BEC made its gloomy comments on the market, the authoritative Construction Forecasting and Research study predicted total construction output is set to grow by a total of just 2% over the next two years. This compares with a 3% growth over 1995-96 anticipated in their main winter forecast issued last December.

Overall, say the forecasters, the marginal industry recovery will continue.

But 'the rate of growth is expected to be less than forecast a few months ago, mainly because of a less buoyant housing market in tandem with an even more pessimistic outlook for infrastructure.'

Also, the actual total output in 1994 proved to be slightly higher than expected.

It is now forecast that there will be a 1.2% increase in output this year followed by a 0.8% increase in 1996. Infrastructure new work is set to fall by 8.5% and 3% respectively. This is balanced by anticipated increases of 12.1% and 4.9% in industrial work and 7% and 5% in commercial building.