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CPA: Construction industry continues to suffer

All areas of the construction industry continued to suffer in the third quarter of 2009, the Construction Products Association’s latest Trade Survey has shown.

A balance of 39 per cent of building contractors reported that output was lower in the three months to 30 September 2009 than in the same period a year prior.

Civil engineering workloads were also down from a year earlier according to a balance of 65 per cent of respondents.

Further signs that the industry was still in recession were found with 86 per cent of heavy side manufacturers reporting sales down from a year ago, along with 75 per cent of light side manufacturers.

CPA economics director Noble Francis said: “Although it was a surprise to many forecasters that the economy continued to contract during the third quarter of 2009, the fall in construction activity which was predicted in earlier forecasts is now borne out in the latest Construction Trade Survey, which illustrates that all areas of construction have contracted during the last quarter.

“With sharp falls currently in private sector construction and the potential for sharp spending cuts post-election in public sector construction, this is a critical time for the industry, which is not expected to see any growth until 2011 at the earliest.”