Construction output to hit record levels

Posted on March 21st 2016

by News

The output of the construction sector is set to soar to record levels in the year ahead, the latest research is predicting.

According to data from analysts Leading Edge, total output will jump by 3.3% on 2015 to reach an unprecedented figure of £135.3 billion.

This will be well up on the previous peak of £133.7bn, which was achieved during the pre-recession boom of 2007.

All sectors are expected to contribute to the new surge in productivity, the findings suggest, with infrastructure, industrial and private house-building leading the way.

The only exception to the positive picture will be the public housing sector, which is expected to see a shortfall in 2016.

However, the commercial sector is predicted to return to growth this year following a slight dip in productivity in 2015, the research shows.

These positive findings come on the back of the strong order book seen last year, according to Leading Edge director Mel Budd.

“Total new orders for 2015, a good indicator of what will happen in output in 2016 and 17, showed a 2.8% year on year increase,” Mr Budd said.

“Although there were sharp falls in public housing and non-housing, this was expected, while infrastructure and industrial saw strong growth.”

The trend towards growth is also expected to continue right through to the end of the decade, the findings show.

Construction output is predicted to be 17% higher in 2020 than it was last year.

Infrastructure will once again be one of the strongest performing sectors, with spending on areas such as energy and transport set to increase.

House-building, industrial and commercial are also expected to surge ahead.

Mr Budd said: “Although the Office of Budget Responsibility has just downgraded its GDP forecasts, the UK economy is still relatively healthy and one of the fastest growing western economies, which will help grow output in the construction sector.”

Source: www.citb.co.uk