Construction Industry is on the up and recovery is stronger than originally forecast
Monday 13th January 2014
The Construction Products Association believes that output will rise 2.4% this year and 5.2% the following year which is stronger than originally forecast.
Dr Noble Francis, Economics Director of the Association, said: “The construction industry is in a very different place to just one year earlier, when output fell to a level 15.4% below its pre-recession peak.”
Output between 2008 and 2013 fell 33.1% in the largest construction sector which is private commercial.
Dr Francis said that in the medium-term, from 2015 onwards, infrastructure was likely to be supported by growth in the energy sub-sector due to works on the first nuclear reactor at Hinkley point C where Shield was contracted to carry out asbestos removal as part of the enabling works.
Housing statistics in the UK last year have been estimated to have increased by 24%, 26% this year and 10% for the next. Private housing growth has been supported by wider economic recovery and the governments Help to Buy Policy for first time buyers.
One of the reasons behind the more positive forecast and increased recovery rate is due to significant London office projects and large retail schemes coming through the pipeline, this has proved enough to start recovery in the construction sector.