Construction Industry Forecast Autumn 2018

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After the weather and Carillion affected Q1, during which construction output fell by 1.6%, construction enjoyed a partial catch-up in the sunshine and second quarter output was 0.8% higher than in the first quarter. Excluding the weather impact in Q1 and the catch-up in Q2, the indications from firms in the supply chain are that construction activity in 2018 so far has been broadly flat. However, this masks a considerable variation by construction sector, with growth in private housing, industrial warehouses and many parts of infrastructure set to offset falls in education, health and commercial activity. In addition, there is also a significant variation in the fortunes of firms working in different regions within the same sector.

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