Contract Helps To Drive Recovery
GROWTH of 4.9% (compared to 2013) is forecast for the total GB construction output volume (at constant 2010 prices) this year, according to the construction research specialists Leading Edge. Further growth of 4.1% is forecast in 2015,
Mel Budd, md at Leading Edge, says, ‘We’ve been forecasting a return to growth in 2014 for a while although the size of the turnaround is larger than we originally expected. The key sectors driving growth in 2014 will be housing, private commercial and infrastructure’.
Although housing and commercial are still behind the peak levels of 6 – 7 years ago, infrastructure output is powering ahead and is likely to see its second highest ever output level this year.
Mel adds, ‘New orders performed well in Q3 of 2013 in all sectors except public, where the spending cuts are still having an impact. We expect this pick up to feed through to output in 2014. London looks set to be the best performing region, although we are forecasting that all the regions will see some growth in 2014.
Leading Edge forecasts that total construction output in 2017, at £131,300m will be 2.3% higher than the 2007 peak of £128,310m.
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This article has been reproduced from the Contract Flooring Journal website. You can find them at www.contractflooringjournal.co.uk.