Construction ouput forecasts for next two years
The construction sector will grow less than expected over the next two years, according to economic forecasts from Experian.
In its Spring update, Experian said the impact of the global growth slowdown and uncertainty around the EU referendum will hit output in the sector this year and in 2017.
Construction output growth has been lowered to 2% this year and 2.9% next year.
It is the third consecutive time Experian has downgraded its output forecasts for the sector.
In its last set of forecasts, published in January, Experian had said the sector would grow 2.6% this year, and 3.9% next year. Meanwhile in last October’s forecasts the finance house said the sector would enjoy 3.6% growth in 2016 and 4.3% growth the next.
Experian said the latest forecast slowdown will impact the private non-residential sector the most, both in new build and repair and maintenance.
Infrastructure forecasts for 2017 have also been downgraded due the rescheduling of the main construction works to 2019 on the £18bn Hinkley Point C nuclear power plant in Somerset.