New work output is expected to decline slightly this year mainly as a result of a significant fall in orders in the latter half of 1999. Next year, new work output is likely to recover to around its long term annual growth rate. The public non housing and infrastructure sectors are expected to be the key growth areas over the next two years, mainly due to the provisions made in the Government's Comprehensive Spending Review and the 10 Year Transport Plan. It is anticipated that total construction output will increase this year and next. . The degree of difficulty in securing skilled labour increased for all trades in 1 st quarter 2001.
Bricklayers are currently the most difficult to secure. .
Tender prices are expected to rise over the next two years mainly due to input cost increases and the increase in demand for new work in 2002. . The forecast is for tender prices to rise well above the level of general inflation over each year of the forecast. However, if the economic slowdown in the US has an adverse effect on the UK economy, this may have a dampening effect on tender price increases. Index figures and the full commentary are available through BCIS Online or in Indices and Forecasts . This information may not be republished without the written permission of BCIS .