Confidence is returning to the UK construction sector, driven by a 16.5% surge in new orders in Q2 2024. The most recent UK Construction Market Outlook Report, published today by leading cost and project management consultant Currie & Brown, also highlights a 1% overall increase in construction output in Q3.
The UK Chancellor鈥檚 recent promise to invest 拢100 billion in capital projects over the next five years will provide an additional boost to the overall project pipeline. Specifically, the additional 拢4 billion earmarked for education, including 拢1.4 billion for the school rebuilding programme, and 拢500m in new funding for the Affordable Homes Programme, bringing total investment in housing supply to over 拢5 billion, will provide some much-needed stimulus.
With inflation now relatively low at 2.3%, and the Base Rate cut to 4.75%, the current macroeconomic context adds to the 海角社区 for the industry in the short- to medium-term.
Taken together, the data from the report provides welcome relief for a sector which, in recent years, has been plagued by ongoing volatility in the supply chain and labour market.
However, there are still issues of concern; Not least of which is a continuing lack of clarity from central government about supply and resource capacity in the industry. Additionally, the tax-raising measures in the recent Budget, including an increase to employers鈥 national insurance contributions, could do more to stifle private sector investment than encourage it.
Nick Gray, Chief Operating Officer, UK & Europe at Currie & Brown comments: 鈥淭he construction industry looks set for a period of further growth, driven by bold investment from the government and stabilising economic conditions in the UK. At the same time, it鈥檚 encouraging to see the industry鈥檚 focus on innovation through the adoption of Modern Methods of construction, better data and new technology. But we cannot afford to be complacent. Against a still unpredictable geopolitical backdrop, firms must remain agile. Curation of advances in digital technologies like AI to enhance project efficiency and adopting two-stage tendering will be crucial to building and maintaining resilience as the UK鈥檚 economic and political landscape unfolds.鈥
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