Construction Industry Forecast Summer 2018

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Construction activity in 2018 has already been dragged down by the fall in output during the first quarter of the year, in which the industry lost over £1.0 billion of work. This fall was primarily due to the liquidation of Carillion in January and then poor weather throughout the first quarter affected late February and early March. The extent to which the decline in output in 2018 Q1 affects work overall for the year will be determined by, firstly, the effects of Carillion’s demise on near-term activity on the ground as well as the impact on its subcontractors and suppliers and, secondly, the extent to which work lost during the periods of bad weather can be recovered.

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