Construction output in Ireland will drop by a further €1bn next year, it has been claimed.

The estimated value of the industry for this year was put at €30.5bn, economists, however, have suggested this could drop to €29.1bn in 2009.

Industry figures peaked in 2007, with values set at around €38.5bn.

Statistics produced by economists Annette Hughes and John Lawlor, from DKM Consultants, have predicted the public sector will play a pivotal role over the next three years.

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Core infrastructure projects have been allocated €8.74bn by the government next year, aimed at propping up the sector.

Output in the industry over the next three years is expected to drop by 13% - an average annual decline of 4.3% - according to estimates.

Recovery is predicted to kick-in by 2011, twelve months later than previously thought.

Annette Hughes said: "The difference between now and the June forecast reflects the expectation that the extent of the contraction in construction output is now expected to be more severe and to last longer, with the result that the recovery, which was expected in 2010 in the June forecast, is now delayed until 2011."

(PR/JM)