According to the Construction Products Association (CPA), contractors’ surveys show that they are busy with current workflow and year end growth forecasts are set to be 1.6%. However, 2018 growth forecasts have been downgraded to 0.7%, down from the previous CPA forecast of 1.2%. This will represent the slowest growth in construction for six years, mainly a result of a slowing economy, falling real wages and rising costs.
Tony Brennan, Director – Quantity Surveying, commented: “Construction output is certainly starting to slow with nervousness around Brexit driving investment out of the industry. Since their peak in Q2 2016, the value of new orders has been in a gradual decline throughout the UK.
“It is too early to say what the overall outcome of the Brexit negotiations will be on the construction industry. We can assume however that in the result of a hard Brexit, the adverse effect on UK GDP would certainly be of concern to the industry.
“Moving forwards, the industry is increasingly reliant on government investment in private housing schemes, such as Help to Buy, and key infrastructure projects including HS2 and the Thames Tideway Tunnel.”
To find out more, click here to read the latest version of our Construction Market Briefing.
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