Construction Growth Rate to Peak This Year Before Slowing
5th February 2015
The Construction Products Association (CPA) expects a slight softening in growth due to election uncertainty, but have revised their forecast once again showing an output increase by 5.3% in 2015.
With construction output growth predicted to average close to only 4% between 2016 and 2018, the CPA expect a slight softening which may be due to contract awards and slowindustry investment from election uncertainty.
The CPA's annual forwcast report states: "There could be a hiatus in infrastructure contract awards, capital investment and lending if no government is formed quickly following the election. Given longterm frameworks and the lag between contracts or investment decisions and output, any hiatus would likely only impact upon output from 2016."
Private house building is forecast to rise 10% in 2015 and 20% by 2018.
It is essential that there is significant investment in UK construction skills and manufacturing over the next few years if the growth forecast is to be achieved.