The UK is going to see the big change in the field of construction. The construction industry will grow by 23% by the end of 2018 and contribute £12bn to the UK economy over the next two years alone. This forecast has been given by the latest Construction Products Association Autumn.
The main point to features:
Construction output will grow 4.8% in 2014 and 5.3% in 2015;
Private housing starts are expected to grow 18.0% in 2014 and 10.0% in 2015;
The private commercial sector is set to increase 3.7% in 2014 and 6.1% in 2015;
Roads construction will rise 46.1% by 2018
Energy infrastructure is anticipated to grow 118.2% by 2018.
UK Construction industry set to grow by 23% by 2018
“Our Forecasts reflect a welcome, recurring theme as growth continues and begins to broaden. Short-term activity is still led by private housing, infrastructure and commercial, and areas of public sector construction are showing the first signs of increasing strength.
We believe the expansion will continue through 2018.” explained Dr Noble Francis, economics director of the Association.However, he advised the revival is not an inevitable conclusion and risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 general election and the impact of any supply constraints such as the dearth of labour and materials.
The private housing sector’s speedy growth since early 2013 has been sustained by consistent levels of demand. The general UK economy return to health and government policies such as ‘Help to Buy’. Many experts forecasted the starts to rise 18.0% in 2014 and 10.0% in 2015.
The Association’s central forecast estimates that construction output will rise 4.8% in 2014, a marginal change from the previous 4.7% estimate. Output is forecast to rise a further 5.3% in 2015, an upward revision from 4.8% growth in the Association’s Summer Forecast due to the continued strength of the UK economy.
