Construction output is set to rise 9% this year, largely on the back of high government spending, according to industry research published today.
This figure, along with predicted rises of 7% and 5% in 2003 and 2004 respectively, suggests that the flagging commercial market is not hitting construction as badly as had been feared.

The figures come from a report by Construction Forecasting and Research, which indicates that the liveliest sectors are infrastructure, health and education and public housing, which will experience double-digit growth in the next two years.

Alan Armitage, managing director of CFR, said government spending will narrow the North鈥揝outh divide: 鈥淭he divide will be less evident with new infrastructure projects causing particularly high levels of activity in the North-west and Yorkshire and Humberside.鈥�

This year鈥檚 highest increase in construction output will be in the South-west, with 16% growth.