Both contractors and materials firms reported slowing growth in the last quarter of 2007, but reported that output and sales both continued to rise on the same period in 2006.
Economics policy development director Noble Francis said: “There is concern over output and sales growth in the first quarter of this year. However, expectations for 2008 as a whole remain buoyant.
"Whilst there is an absence of firm order books and new enquiries and a more subdued outlook for the UK economy, the industry is optimistic. During the next twelve months firms expect to see orders from 2007 feeding through into actual work, focusing particularly on public sector activity in health, education and infrastructure."