AFTER a bad year last year, the region's construction industry has little more to look forward to this year, claims a report this week.

The report from Experian, an information solutions provider, suggests a similarly downbeat outcome for 2005 and a slight improvement by 2006.

The forecast shows a particularly poor year this year for new commercial and infrastructure construction.

Expenditure on infrastructure is set to continue to drop from the unusually high levels witnessed in 2002.

James Hastings, associate director of Experian's Business Strategies division said: "The general outlook for the South West is rather bleak.

"Ironically, new construction output in the region is being partly supported by the industrial sector, where activity has leapt on the first signs of optimism from manufacturers.

"Also, the Government has signalled its commitment to non-residential projects in the area.

"But in general, there is little to get excited about in the region, with even public housing, which is expected to experience very strong growth in other regions, expected to increase by just five per cent this year before stagnating in 2005."