Construction industry to maintain housing market

Construction output is predicted to grow by 0.8 per cent this year and 1.4 per cent in 2003.

The public housing sector is expected to be the main driver of activity, although private housebuilding will also help boost output.

Ryan Emmett, economist at RICS, said: "We expect commercial building to take a break after being the engine of growth for the construction industry during much of the last five years. A slowdown in business investment will drag down output in this sector over the next year or so, but the reins will be taken up by the public sector and infrastructure investment - continuing the strength already evident in the second half of last year."