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Published: 07/03/2024
From an increase in repair and maintenance activity to stabilising materials prices, there are some encouraging signs of recovery within the construction sector, especially as the period of rampant inflation appears to be behind us. However, at the tail-end of last year, construction was a significant contributor to estimates that UK gross domestic product (GDP) fell by 0.3% in 4Q2023, with the country entering a technical recession. Despite this, it’s expected that the economy’s contraction will be short-lived.
However, there are significant risks to recovery that could contribute to mounting inflationary pressures. The evident decline in demand – new orders in 3Q2023 fell to their lowest level since 2Q2020 – combined with the conflict in the Middle East, which shows no sign of abating, means we’re not out of the woods yet. In addition to this, the bank rate looks set to remain stubbornly high at 5.25%.
How will these risks affect future construction output and are they enough to trigger a period of sustained negative growth for the sector?
The webinar
The presentation
You can access a copy of the presentation here.
The Q&A
You can access the Q&A here.
The poll results
You can access the poll results here.
