The data provided by the Construction Products Association (CPA) indicates that total construction output is projected to decrease by 2.9% in 2024 before a rebound of 2.0% in 2025, which is slightly more pessimistic than anticipated three months earlier.
The downward revision in the projections is mainly attributed to the delay in recovery in the two largest construction segments, namely private housing new build and repair, maintenance and improvement (rm&i).
This adjustment is a result of a drop in demand and confidence in the broader housing market post-Easter due to the rise in mortgage rates. Nevertheless, the forecasts for the other significant construction sectors remain consistent with those from three months ago, as numerous companies engaged in industrial, commercial refurbishment and fit-out, or involved in major infrastructure projects, continue to witness strong levels of activity.
CPA - Industry Forecast (Summer 2024)
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