Construction output is forecast to fall by 2.9% in 2024 but coming towards the end of the year, the focus is clearly on next year and construction output is forecast to rise by 2.5% in 2025, which is slightly more positive than expected three months ago.
The wider UK economy appears to be in a stronger position than it was 3-6 months ago and early indicators for the two largest construction sections, private housing new build and private housing repair, maintenance and improvement (rm&i) point towards growth in 2025. In addition, activity in the industrial sector has picked up earlier than anticipated due to some large one-off projects.
The forecasts for the other key construction sectors remain similar to three months ago, as many firms operating in commercial refurbishment and fit-out or working on major infrastructure projects continue to experience robust activity.