Construction is expected to fall into recession this year with a 2.2% drop in output before turning to of 2.1% growth in 2025 and further growth of 3.6% in ’26, according to the spring forecast by the Construction Products Association.
Head of construction research Rebecca Larkin said: “Almost all sectors of construction had a bad start to the year with persistent rainfall delaying work on site, especially outdoor work. Whilst we may see a degree of catch-up activity as the weather improves, smaller sites are likely to see work simply pushed back due to capacity constraints. Of more concern to the industry’s near-term prospects is the sharp drop-off in activity in its two largest sectors, private housing new build and private housing rm&i. With both sectors forecast to contract this year, the key question remains how quickly and how effectively expected cuts in interest rates can stimulate the economy and housing market as well as how quickly they can restore house builder confidence to resume activity and spark homeowners’ appetite for large improvements projects.
“The Forecasts anticipate a return to growth of 2.1% in 2025 and further growth of 3.6% in 2026 although clearly, there is greater uncertainty around activity in 2026 given the potential for a new government resulting from a General Election this year. The impact this could have on public sector spending plans and the longer-term delivery of infrastructure and public sector projects present the longer-term opportunities – and risks – for construction.”
https://www.constructionproducts.org.uk/
