Timetric’s Construction Intelligence Centre (CIC) has forecast an annual growth rate of 4.2% for the UK’s construction sector over the next five years, following an average annual expansion of 0.5% between 2010 and 2014. The positive estimate is partially due to investments under the National Infrastructure Plan 2014, in addition to a period of policy continuity after the Conservative Party won a majority in the recent general election.
Residential construction is the largest market within the UK construction industry, accounting for around 40% of its total value. Timetric CIC expects this to continue, with support from investment in residential projects in line with housing shortages and demand. Commercial construction is the second biggest market at approximately 26% of the total sector’s value. This has been forecast to increase, boosted by higher consumer spending and business investments, as well as rising demand for office space outside of London and the South East.
“Given its intention to persist with a general policy of austerity to consolidate its fiscal position, it is likely that many of the Conservative Party’s costly investment pledges made ahead of the election, including many road and rail projects, will be quietly dropped. However, in a bid to tackle congestion, increase capacity and enhance connectivity in the country, the government will invest to improve the road network,” said Danny Richards, Lead Economist at Timetric’s CIC.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/26052015/timetric-cic-forecasts-positive-outlook-for-uk-construction-industry-896/