Despite a relatively strong 1H17, growth in the UK construction sector will slow this year, according to analysis from BMI Research, a part of FitchGroup. Following growth or 1.8% in 1H17, the research company expects a slowdown over the rest of the year to bring annual growth in line with its forecast of 1.4% this year.
Last year, the UK’s construction sector grew by 2.38%.
Beyond the end of this year, BMI Research is forecasting a recovery driven by the residential building sector, as well as a number of large infrastructure projects. Growth jumps back over 2% in 2018, to 2.1%, and then to 2.85% in 2018.
The forecast remains vulnerable to the uncertainty around the Brexit process, however, and the continued impact this may have on business investment. According to BMI Research, the vote to leave the EU has already resulted in the cancellation or delay of some investments.
“Brexit will remain a drag on growth into 2018 and 2019 – until there is greater clarity on the circumstances surrounding the UK’s departure,” the research company concluded.
Read the article online at: https://www.worldcement.com/europe-cis/21082017/uk-construction-sector-slowdown-to-gather-pace/