A study has found that construction in Yorkshire and the Humber suffered an eight per cent fall in output in 2012, meaning the region will remain in recession.

This mirrors the UK trend over the past five years, which has seen the construction industry go through one of its most difficult periods since World War II, and the predicted prospects are for 10 more years of pain.

The Construction Skills Network (CSN) report – the industry’s annual forecast prepared by CITB-Construction Skills with input from employers across the UK – shows the difficulties the Yorkshire and the Humber construction sector faced last year.

The report also concludes that the outlook for the region will continue to be discouraging over the next five years.

According to CSN figures, the Yorkshire and the Humber’s construction industry will see a decline in output of 0.9 per cent per year between now and 2017; the second worst outlook in the country.

Public non-housing are forecast to suffer the most with declines of 10 per cent per year during the period, while infrastructure will be the next hardest hit, with a predicted 5.1 per cent rate of annual decline.

Construction employment levels in the region will also shrink, at a rate of 1.6 per cent each year between now and 2017, according to the report.

Although the figures show decline for the region’s construction industry, there are some predicted growth areas. Private housing in the region is expected to see an increase of 3.8 per cent and industrial work an increase of 1.5 per cent.

Steve Housden, sector strategy manager for CITB-Construction Skills in Yorkshire and the Humber, said: “Construction found itself at the heart of a ‘perfect storm’ in 2012 – hit hard by a combination of public sector spending cuts and a lack of investment in the private sector. Client and consumer confidence are low and are keeping growth levels down.

“Unfortunately, all of these factors have had severe consequences for the construction industry in Yorkshire and the Humber, with the CSN predicting further contractions in growth and employment over the next five years. With this in mind, we are doing all we can to work with construction employers to add value during these tough times, as this will hopefully lead to further growth on a local and national level.”