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Construction sector faces no recovery for two years

CONSTRUCTION industry experts yesterday said they do not expect any recovery in the sector&rsquo;s fortunes until 2011 following the sharpest decline in output on record.<br /><br />Despite some encouraging signs that the wider economy is creeping out of a recession, the construction output is expected to fall by 15 per cent this year, and a further two per cent decline in 2010, according to the Construction Products Association (CPA). The CPA said that due to a number of halted City office projects during the downturn by 2010 the commercial construction sector is expected to be less than half the size it was just two years earlier.<br /><br />The industry is currently cushioned by government spending on infrastructure and public investment in schools and hospital but the widely trailed cut-back on public spending means the construction sector could be further squeezed.