Firms report slowing activity across the construction supply chain
The Construction Products Association has significantly downgraded its output forecast for 2025 and 2026 as it warned of growing uncertainty ahead of next month’s Budget.
The CPA’s autumn forecast revised output growth for this year from 1.9% to 1.1%, and for next year from 3.7% to 2.8%.
It said firms across the whole construction supply chain reported slowing activity since the spring, particularly in private housing, infrastructure roads and commercial newbuild offices.
Firms also reported subdued activity in private housing repair, maintenance and improvement, according to the CPA.
The report found increasingly “fragile” investor confidence among homebuyers, homeowners and investors ahead of the upcoming Autumn Budget amid uncertainty over where chancellor Rachel Reeves’ widely expected tax hikes will land.
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Reeves is reportedly considering breaking a Labour manifesto pledge not to raise taxes on “working people” as she seeks to fill a £22bn shortfall in the government’s finances.
Last week she refused to rule out an income tax rise and suggested any hikes would be focused on “those with the broadest shoulders”.
The gap in government finances has been driven by the Office for Budget Responsibility’s (OBR) decision to downgrade productivity forecasts, erasing most of the £10bn “headroom” Reeves set aside at the spring statement.
The Autumn Budget is scheduled for 26 November.
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