Please find enclosed the detailed Construction Industry Forecasts (Summer 2017) in pdf and excel format.
Key Points:
• Construction output to grow by 1.6% in 2017 and 0.7% in 2018
• Private housing starts to rise by 3.0% in 2017 and 2.0% in 2018
• Public housing repair, maintenance and improvement output to remain flat in 2017 and 2018
• Commercial offices output to fall by 1.0% in 2017 and by 12.0% in 2018
• Infrastructure construction to grow by 7.4% in 2017 and 6.4% in 2018
Summary
Construction output is forecast to rise by 1.6% in 2017, primarily driven by growth infrastructure and private house building, offsetting declines in commercial offices, retail and industrial factories. The growth is a revision upwards from the 1.3% in our previous forecasts due to momentum from the first quarter and an upward revision to public housing rm&i to deal with short-term urgent measures on existing social housing towers that will need to be made in the light of the Grenfell Tower fire.
However, slowing economic growth, falling real wages and rising costs are likely to adversely affect the industry in the next 12-18 months and construction output during 2018 is expected to grow by only 0.7%. This is a downward revision from the 1.2% forecast in our previous forecast due to delays in delivery of infrastructure projects. Furthermore, even the 0.7% growth forecast is heavily reliant on increases in private house building and infrastructure delivery. Without growth in these two sectors, construction output would remain flat in 2017 and fall by over 1.0% in 2018.
If you have any queries regarding the forecasts please contact me (details below).
Kind regards,
Noble
Prof. Noble Francis
Economics Director at the CPA
and Visiting Professor at the University of Westminster
CPA
Our website uses cookies for user experience improvement and analyzing purposes. By clicking 'OK' or by continuing to use our website you agree with this. Read More.OK
Privacy & Cookie Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
