The construction industry will grow 23 per cent by the end of 2018 and contribute £12 billion to the UK economy over the next two years alone, according to the Construction Products Association.

Published today, the CPA’s autumn forecasts predicts that construction output will grow 4.8 per cent in 2014 and 5.3 per cent in 2015.

Private housing starts are expected to grow 18 per cent in 2014 and 10 per cent in 2015 while the private commercial sector is set to increase 3.7 per cent in 2014 and 6.1 per cent in 2015.

The CPA said roads construction will rise 46.1 per cent by 2018 and energy infrastructure is anticipated to grow 118.2 per cent by 2018.

Dr Noble Francis, economics director of the Association, said: “Our forecasts reflect a welcome, recurring theme as growth continues and begins to broaden. Short-term activity is still led by private housing, infrastructure and commercial, and areas of public sector construction are showing the first signs of increasing strength. We believe the expansion will continue through 2018.

“Recovery is not a foregone conclusion however, and several important risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 General Election and the impact of any supply constraints such as the scarcity of labour and materials.”