THE FUTURE LOOKS BRIGHT
UK construction output is expected to bounce back to 2.3% growth in 2019 after dipping by 0.6% this year.
The growth hiatus this year ends the five-year run enjoyed by the industry, fed mainly by private sector home building and strong commercial and industrial activity.
While forecast 2019 and 2020 growth will boost civils contractors and trade contractors working for house builders, commercial building contractors are expected to continue to feel the squeeze in both commercial and retail work opportunities.
The latest forecast from economists at the Construction Products Association, revises 2018 output down from stagnation to contraction, due mainly to bad weather and the fall-out from Carillion.
Forecasters predict growth will bounce back in 2019 and then expand by 1.9% in 2020.
Strong house building activity outside London will drive up activity in this sector by 5% in 2018 and 2% in 2019.
Infrastructure will also become a primary driver of growth for the whole industry, with output forecast to hit a historic high of £23.6bn by 2020, driven by large projects such as HS2 and Hinkley Point C.