Construction Review and Forecast for 2017

UK construction activity has been buffeted during 2016 by economic and political uncertainties. Industry workload pipelines and order books have been disrupted as investors and clients have delayed and re-appraised their development plans in the light of the EU referendum vote. 

The new administration is similarly revisiting and reviewing the Government’s commitments, priorities and spending plans. 

The most immediate challenge is that, whilst the UK has voted out of the EU, it may be several years before it becomes clear what the UK has voted into.

The UK economy has initially fared better in the immediate aftermath of the referendum vote than was widely predicted; economic growth slowed during the third, in part due to a fall in construction activity, but was still 0.5% ahead of the previous quarter. Looking ahead UK economic growth is forecast to weaken further next year, with capital expenditure expected to be particularly weak. 

Glenigan’s Construction Review and Forecast for 2017 assess the industry’s recent performance and it prospects for the coming year against this uncertain economic background, The report can be found here.