The Construction Products Association forecasts 3.0% growth in construction output during 2016 and 3.6% in 2017, a downward revision from the 3.6% growth forecast three months ago.
This is due to heightened concerns regarding the effects of slowdown in global economic growth prospects, the impacts of uncertainty from the upcoming EU referendum on investor uncertainty and the potential for growth in the industry given key issues around skills shortages.
Professor Noble Francis, Economics Director, said: “The latest forecasts for construction are still positive. With growth of 3.0% in 2016 and 3.6% in 2017, activity in the construction industry is expected to outpace growth in the wider UK economy. The risks to this growth, however, continue to rise.
“UK economic growth forecasts continue to be downgraded in light of poorer global economic growth prospects. In addition, the months leading up to the EU referendum in June will inevitably see a drop off in investment as increased uncertainty leads nervous investors to adopt a ‘wait and see’ policy until the referendum is out of the way, which could have a significant impact on UK economic growth and the construction sector in particular.”
Despite these substantial risks, the CPA are anticipating growth in the three largest construction sectors; private housing, commercial and infrastructure.
