While last year saw construction industry output top €30.5bn, economists have now predicted that more than €1bn could be wiped-off this value in 2009.

In 2007 values peaked at around €38.5bn, according to figures produced by DKM Consultants economists Annette Hughes and John Lawlor, who have hinted at a massive dip to €29.1bn in output values this year.

The experts, who produce regular reports on the sector for the Government, said the public sector will play a key role in supporting activity levels in the construction sector over the next three years.

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They believe the €8.74bn allocated by the state for infrastructure will help the ailing sector.

However, recovery in the industry is not expected until 2011, a year later than previous predictions made in June.

Ms 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/BMcC)