The construction industry will be pleased to learn that Londons successful bid for the 2012 could see construction work start as early as 2007, according to the latest national construction forecast by Experian.

Construction output exceeded the £80 billion mark last year however the industry has been affected by the slowdown in the housing market.

James Hastings, Associate Director of Experians Business Strategies division, says: "Londons successful bid for the 2012 Games will certainly boost construction output in the UK, particularly infrastructure and non-residential sectors. Total capital investment is expected to be in the region of £8.6 billion. The largest section of investment, some £6.3 billion, will be focused on improving Londons transport infrastructure."

"The remaining £2.3bn will be invested in Games specific capital, such as the Olympic Village and numerous sports venues. Whilst we do not expect this work to peak until at least 2009-10, initial work could start as early as 2007. As a result, our 2007 forecast could be a little on the low side and growth could quite possibly exceed 4%."