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The CPA predicts growth of 3.1% this year, supported by a sustained rise in new work and a modest recovery in repair and maintenance activity. Whilst growth is predicted to slow temporarily to 1.8% next year, the industry is set to enjoy more robust growth of 3.1% in 2009 supported by a strengthening economy and a modest rise in government funded projects.

Allan Wil茅n, economics director of the CPA, said: 鈥淭he industry鈥檚 prospects remain bright as Brown moves into Number 10. After two lean years, industry growth is expected to quicken and to be more broadly based鈥�. However this growth will not be uniform across all sectors. 鈥淗igher interest rates are expected to temper both new house sales and home improvement work over the next two years. In addition the pick-up in infrastructure output is forecast to be slower than previously anticipated,鈥� he added.