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Falling public sector investment has created a north/south construction divide, according to economic forecasting group Experian.

The firm's Construction Forecasting and Research arm said in its Foresight report that the north of England's construction boom has tailed off because of the drop in public sector infrastructure investment.

Construction output is forecast to rise 13% by 2008 across the UK. However, the survey says regions including the east Midlands, north east and Scotland will fail to match this. Yorkshire and the Humber is "expected to be the weakest region going forward".

However, private sector investment on work for the Olympics and in Thames Gateway will buoy construction in Greater London and the south east.

Wales will benefit from Welsh Assembly investment in public construction, with the west Midlands and the east of England also set to outstrip the national average.

The south west is expected to match the 13% figure.