According to our Construction Industry Forecasts, construction output is expected to fall by 6.8% in 2023, similar to the 7.0% contraction forecast three months ago, before a further marginal fall of 0.3% in 2024, a revision down from the 0.7% growth forecast in the Summer. Both private housing and private housing rm&i are forecast to be the worst affected by the prevailing economic conditions of flatlining growth, stubborn inflation and interest rates remaining at peak throughout 2024. Infrastructure activity remains strong down on the ground due to work continuing on major projects but there are signs that more roads projects are being pushed back or cancelled than anticipated previously, limiting the sector’s growth over the next 12 months.
Read the full summary and more of our teams thoughts here.