Growth in Britain\'s construction industry will slow rapidly as the public sector construction funding boom runs out of steam over the next two years, according to Experian, the global business solutions company.

This year, construction output is expected to rise by 3.2%, down from 4.3% in 2003. In 2005, growth is forecast to moderate further to 1.8% before increasing to 2.7% in 2006.

However, despite the expectations of more subdued growth this year, the construction industry will still outperform the rest of the economy, where GDP growth of 2.7% is forecast by Experian.

The Construction Products Association\'s latest Construction Industry Forecasts tell a similar story. It says higher government spending will be crucial to sustained construction industry growth over the next three years as work generated by the private sector weakens.