The good news is that GDP is expected to grow by 1% this year with no significant increase in interest rates in the short term. However the June RICS Housing Market Survey reports that on balance house prices continue to fall and activity levels remain flat. This is supported by the Halifax in their latest House Price Index where they report that house prices in the three months to June were 0.5% lower than in the previous quarter. But, this was the smallest quarterly fall in prices since the second quarter of 2010 and there was a 1.2% rise in prices in June.

For new build, Glenigan forecasts private house building to stabilise by the end of the year. Alan Wilén, Economics Director said "The Government's FirstBuy programme will help to bridge the mortgage gap for first time buyers. In contrast social housing will decline further as a result of continued public sector cuts." This view is supported by major housebuilders like Persimmon who stated in their July trading update that underlying demand is resilient, with market conditions during the first half of the year stable. They expect to deliver a similar number of completions this year as in 2010, with an increase in volume in the second half.

Both the Construction Products Association and Experian published their revised forecasts this month. The CPA expect construction activity to continue its decline for at least the next two years, followed by only weak growth in 2013, before any significant recovery is likely to return in 2014. They anticipate a 7% rise in private housing starts in 2011, followed by 4% in 2012, with steady improvement after that. This is supported by Experian who expect growth of nearly 30% in this sector by 2013.

Another growth area is Retail, but this is polarised with the major supermarkets all investing in stores, while the rest of the retail sector contracts. Overall the retail sector is likely to grow by 4% in 2011.

A split in activity is also showing in Offices, which is forecast to rise by over 50% in the next five years. But this is driven almost entirely by the London market. The other big growth areas are energy and rail, both of which will see significant investment, much of it in general construction work.

A recent report - 2021 Vision: The Future of the Electrical Contracting Industry was written by Competitive Advantage on behalf of the ECA and NICEIC, to provide a long-term view of the electrical contracting industry over the next 10 years.

The report identifies the likely scenarios which will shape the industry. Highlighting the character and structure of the wider construction industry, the economic outlook, client and main contractor requirements, the range of work which is likely to be undertaken, the knowledge and skills which may be required and key product development and installation trends.

Although focused on the electrical industry it does give a useful insight into how the construction sector will develop. You can read a summary, or download the full report.

Do you know what specifiers think about your company? Are you their first point of contact for technical enquiries, or are they unaware of your company's many strengths? In his article published in RIBA Insight Monthly Briefing Chris Ashworth explains the value of measuring architects' and engineers' perceptions, and of using that information to develop your communications strategy. Read the article.

The Government has published its response to the Low Carbon Action Plan which covers a number of key issues with action plans for construction including procurement and the Green Deal. Details of the latest developments with the Green Deal can be found on the Competitive Advantage website.

A new report has just been published by the Government's Behavioural Insights Team  which sets out research into how people can be encourage to green their homes and be more energy efficient. These pilots are based around behavioural economics and psychology with three of the most significant insights relating to:

(i)our tendency to 'discount the future' (prefer a smaller reward today over a larger reward in the future)

(ii) the power of social norms (people are heavily influenced by what others around them are doing)

(iii) the use of defaults (individuals tend to go with the flow of pre-set options)

They are conducting a number of research projects, including four large-scale field trials, in time for the launch of the Green Deal.