2011 will be another tough year for the construction industry as public spending cuts start to bite.

However, Greg Pitcher, the deputy news editor at Construction News, said that there are some "bright spots" to be positive about - mainly growth in the office and industrial sectors and a healthy amount of work in the rail industry.

But Mr Pitcher warned that job losses could be on the horizon, along with a decrease in production.

This week (December 20th), the Federation of Master Builders (FMB) said the VAT rise to 20 per cent on January 4th will cause the loss of 11,400 construction jobs across the next decade.

"It is a mixed picture, but on balance I would expect a decrease in the number of jobs in the industry over the year," Mr Pitcher said.

"Most forecasts are for a drop in output for the year, so it is a fairly natural assumption that it will be a tough year and that... the number of jobs in the industry is likely to contract rather than grow over the year."