Construction to fall by 3.5% in 2002

The volume of construction activity is projected to fall by 3.5 per cent this year according to the Department of Environment¿s annual industry review.

The volume of activity grew by 4 per cent in 2001 and the fall off this year will be seen as another sign of a downturn in the economy.

Minister of Environment, Mr Martin Cullen, said: "This levelling off is taking place at a high plateau: construction output is now double the level of the mid-1990's".

The review said employment in construction will be around 173,000 by the end of 2002, a reduction of 6.5 per cent on the peak level of 185,000 achieved at the end of 2001.

The value of construction output is projected to be over €20 billion, approximately the same level achieved in 2001.

The review predicts around 51,000 new dwellings will be completed in 2002 compared to 52,600 last year. The review makes note of the fact that just over 21,000 new houses were built in 1993.

Construction output was estimated at 17 per cent of GDP in 2001, this is the second highest in the EU and much higher than the EU average of 10 per cent.