CPA massively downgrades output forecast

The Construction Products Association has massively downgraded its expectations for construction output over the next six years.

It now sees construction workload collapsing faster than at any time since the 1980s.

Its forecasters now think the recession will be longer and about twice as deep as they expected just three months ago.

Forecasters now expect a drop of more than 12% from peak to trough.

The association warned that even by 2013 the industry will only have bounced back to levels of output seen in 2003 and will be 8% below that achieved last year.