Construction to grow 10% in two years

Private Housing will be one of the main drivers for construction growth. Photo courtesy of David Holt London
Private Housing will be one of the main drivers for construction growth. Photo courtesy of David Holt London

The construction industry will grow by about 10% and contribute nearly £11Bn to the UK economy over the next two years according to the Construction Products Association’s latest Summer Forecasts.

 

The association predicts that construction output will increase 4.7% in 2014 and 4.8% in 2015, while total construction output is set to rise 22.2% over the next five years. Forecasts suggest that activity in the sector will be led by private housing, infrastructure and commercial in the short term.

 

Commercial, it is predicted, will have the greatest influence on the overall outlook for the construction industry and should contribute 23.4% growth over the forecast horizon to 2018. The association said the offices sub sector is the primary driver in commercial with output forecasted to grow by 10% in 2014 and 8% in 2015.

 

The association also anticipates a rise in private housing starts of 18.0% in 2014 and 10.0% in 2015, with infrastructure output across all key sub sectors set to increase by 9.2% in 2014 and 7.0% in 2015.

 

Economics Director of the Association Dr Noble Francis said: “The private housing sector continues to benefit from the improving economic backdrop and government policy measures.

 

“The pending general election, however, will cast the future of housing policies into doubt,” he added.

 

Longer term, the association said growth could be boosted by construction work on schools and hospitals.

 

Dr Francis said: “The Forecasts reflect the increasing strength of the sector, though risks remain. We anticipate the recovery will continue through the forecast horizon in 2018 and broaden both across sectors and regions.

 

But, he continued: “Concerns regarding house price inflation may lead to the imposition of lending constraints. This, combined with interest rate rises, may have an adverse impact upon effective demand, and consequently, house building.”

 

Photo Licence: https://creativecommons.org/licenses/by-sa/2.0/

Please rate

Comments 

Ctrl + Enter

Most Read

How candidates can approach recruiters and land that job!

How candidates can approach recruiters and land that job!

If you go to a career fair, there are bound to be tons of recruiters and eager students vying for limited positions. However, the big question is, how do you stand out from the other multitude of job seekers?   It is true that not everybody is great at networking and not everybody knows how

How to make giant strides in the water industry

How to make giant strides in the water industry

A cumulative total of 44 billion pounds will reportedly be spent by water companies in England and Wales over a management period that spans over a five-year period up till 2020. It is expected that midway through this management period; several water companies would have enough capital to execute

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.