Growth in UK construction will slow significantly this year after three very strong years, according to Experian’s latest construction forecasts. In 2004, construction growth was close to four per cent, outstripping GDP for the third year in succession. Strong performances in new housing and public non-residential were only partially offset by declines in infrastructure and non-residential repair and maintenance work.

Construction output growth is expected to slow to around 2% this year and decrease further in 2006, before picking up again to around 3% in 2007. This pattern will push construction output growth below that of GDP this year and next, before both converge in 2007. Stagnation is forecast in private housing and private new housing, while new public housing will steam ahead. Public spending on non-residential buildings has grown year on year by 20% in the past three years and will slow substantially. A bounce-back in the offices market will help the private commercial sector increase output to 2007.

Source

Glass Age

Postscript

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