RICS Economics Construction Research Note

Despite already being in recession, America's construction industry has a greater risk of contraction in output and employment over the coming quarters than the UK industry, as the boom in home building turns to a bust and home builders are forced to cut staff.

Further risks come from a decline in commercial property prices. This could undermine the growth of non-residential construction

The UK construction industry has endured a less impressive performance in recent years, but this has left it less unbalanced than the US industry.

However, its performance in 2008 will be subdued and declines in new orders may threaten activity levels in 2009.

Risks to the UK labour force come from an end to labour hoarding by construction firms.

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