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Construction in recession 'until 1994'

Michael Harrison
Wednesday 01 July 1992 18:02 EDT
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THE construction industry will not emerge from recession until 1994 and even then growth will be modest, the National Economic Development Council forecast yesterday, writes Michael Harrison.

Nedo's construction sector group, which is to be abolished with the rest of the organisation, said that total output would fall by 6.5 per cent this year, bottom out in 1993 and then improve by a modest 3 per cent in 1994.

The forecast mirrors those of building employers who have warned that the industry is suffering its worst crisis for 40 years.

According to Nedo, new construction work will fall by 7.5 per cent this year - a decline put down entirely to lack of activity in the private non-industrial sector.

It will only return to the peak levels of 1987 by the end of 1994, by which time the commercial sector will account for less than 25 per cent of new work against 38 per cent in 1990.

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