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AprilM ervynK ing,t he Governoro f the Banko f England,in dicatedth at he thought inflationw as on the turna nd woulds oon begint o fall.H e anticipatedth at therec ouldb e a sharpd eclinei n the rateo f inflationo vert he nextf ourt o six months.l n Aprilt he consumerp ricei nflationfi guref ellt o 2.8%f rom 31% in March,w hilet he RetailP rice fn dexf ell to 4.5%f rom4 .8%i n the previousm onth.D espitet hesee ncouragingd eclines and the prospecto f fallsi n energyp ricesc ontinuingto reducei nflationi,t is thoughtt hat the Bank of Englandm ayw isht o raiser atesa furtherq uartero f one per cent this summer in ordert o ensuret hat inflationi s underc ontrol The Bank'sr eportf or the first quartero f 2007 warnedt hat inflationw as still 'a mediumt erm risk'b ut affirmedt hat higher borrowing costs would not hurt growth. Neverthelessa s we move ever nearer 2012 and the Olympics,c onstructiona ctivityl evels should remainh ealthy.T he Ernst& Young/ConstructioPn roductsA ssociationA ctivity Barometer was at its highest level ever in the first quarter of 2007 (the survey began in 2005).T he main contributoryfa ctorsw ere statedt o be 'a strongerp rivates ector'a nd 'a modestp ick up in governmenftu ndedw ork'.S imilarlyth e Royall nstitutiono f Chartered Surveyorsf oundt he growthi n the same periodh ad accelerateda t the fastestp ace for three years and singledo ut privatec ommercialc onstructionto getherw ith schoolsa nd hospitalsa s the maine nginesf or expansionT. he PurchasingM anagers'I ndexf romt he CharteredI nstituteo f Purchasinga lso revealeda sharpg rowthi n UK constructionin the quarter and again found it was at the highest level for three years. The spending plans of the Government, utility companies and the private sector suggest that, unlesst here is a significandt ownturni n the economy,c onstructionis set for a sustainedp eriodo f groMh up untilt he Olympicsi n 2012.T he ConstructionP roducts Associationi s predictingth at constructiong rowthw ill outpacet hat of the UK economy over the next three years. lt expects public sector work to pick up but the private sector to be the main driver. It is anticipatedt hat the Governmentw ill soon be publishinga PlanningR eformW hite Paper based on some of the recommendationso f the BarkerR eport.T his advocatedt he streamliningo f the planningp rocessa nd the introductiono f a new systemt o deal with major infrastructurep rojects.T he enactmento f such legislationw ould undoubtedlyb e a further spur to the constructions ector.l t is reportedt hat the governmenti s anxioust o implementc hangest o planningr egulationsin ordert o facilitatei,n particulart,h e building of nuclear power stations as concern mounts over supply in the next decade. Last Novembera reportf rom LogicaC MG concludedt hat the electricitys upply might only be |
