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Contractors’ activity continued to grow during October but the rate of growth decreased with the activity index down four points to 53. Orders and tenders also continued to grow in October, but again the rate of increase slowed. The orders index fell two points to 65 and the tender enquiries declined three points to 58.

Short-term employment prospects also continued to improve in October but the respondents were less optimistic than in September as the index fell four points to 51. Optimism concerning tender prices improved further in October as the tender prices index climbed six points to 69.

The Leading Construction Activity Indicator index fell to 53 in October after standing at 57 in September. Over the short term the indicator suggests construction activity will continue to expand and the index is forecast to stand at 55 in each of the coming three months.

The latest forecast from the Euroconstruct organisation, Europe’s leading construction analysis and forecasting network, suggests Europe-wide construction output will increase 1.3% this year, compared with a rate of 2.2% in 2004. Belgium will be the star performer, with output growth forecast to top 8.2% in 2005.

Going forward, the robust expansion of the central and eastern European economies will play a pivotal role in fuelling the industry growth. The industry is forecast to grow 6.5% to 2008 and be worth more than £800bn, in 2004 prices.