Recession here for two years

Industry experts are predicting a recession until the end of 2009 at least as construction’s main trade bodies released their gloomiest ever trade survey today.

Results from the Construction Confederation and Construction Products Association show contractors are being hammered by the economic slowdown and soaring energy and materials prices.

Both bodies are now predicting that construction output will contract in 2008 and 2009 as the woes in the housing sector spread to other parts of the industry.

Contractors reported that output dived in all sectors during the second quarter of 2008 with the steepest falls in public housing and public non-housing work.

Predictions for the coming months are even bleaker with a balance of 39% of firms expecting a fall in output during the next quarter with most expecting that to continue for the next 12 months.

Order books have also drooped across all sectors with 53% of contractors reporting a fall in inquires.

Profit margins are being squeezed with 56% of firms reporting a drop.