Construction Market Industry Forecasts
Using
Glenigan’s construction forecasts you can ensure your business is
heading in the right direction. Our robust forecasts are created by
our economics team, led by Allan Wilen. Our forecasts are based on
robust data-driven models rather than opinion, so you can rely on
the intelligence we provide. The forecast below is only an extract
of the information we can provide. With a Glenigan subscription you
will be able to drill down to exactly the data you need. Graphs and
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Latest Construction Industry Forecast
Government investment cuts have already had
a negative effect on the value of construction projects starting on
site, most strikingly in the education and social housing sectors.
The value of health projects is also expected to fall back near
term, while the community & amenity sector is seemingly the
only publicly funded to have a strong flow of developments in the
pipeline.
Civil Engineering has provided much of the
new projects of late, but this sector too is dependent on
government funding to a certain degree. While we will have to wait
until next month’s spending review to confirm specifics, it is
likely that a cut in the Department for Transport’s budget will
severely limit prospects for next year.
Despite the good flow of retail and hotel
projects over the past few months, the private non-residential
section of the industry has continued to disappoint. In particular,
improved business confidence and lending conditions have been slow
to lift office starts, although recent months have seen a pick-up
in industrial projects, albeit from an extremely low base.
Private housing has previously been a source
of optimism. However, growth has slowed and the recent dip in the
last three months highlights the fragility of the recovery. Whilst
renewed growth is anticipated over the forecast period, poor
household earnings growth and high unemployment, combined with
limited mortgage availability and stalling house prices will temper
the pace of recovery.
