Construction Industry Forecast Winter 2017-2018

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The overall construction output figures mask varying fortunes across the different construction sectors and growth over the two years is forecast to be heavily dependent on housing outside the capital and infrastructure. Without this growth in these sectors, construction output would fall by almost 2.0% in 2018 and remain flat in 2019. Outside of the private housing and infrastructure sectors, slower UK economic growth and uncertainty around slower growth prospects is expected to weigh on construction output in private sectors. This, combined with the persistent uncertainty created by the slow progress of the UK government’s negotiations on the terms of leaving the EU, has acted as a considerable hindrance to major new investment in private sector construction, especially for new high-end residential and commercial offices projects within London that are particularly reliant on foreign investment.

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