Construction Industry Forecast - Summer 2023
24 July 2023
The construction industry is expected to experience an acute recession this year driven by double-digit falls in the two largest construction sectors: private housing new build and private housing repair, maintenance, and improvement (rm&i). The CPA forecasts construction output to fall by 7.0% in 2023 before recovering slowly in 2024 with growth of just 0.7%, according to its Summer Forecasts published today. With a flatlining UK economy, falling real wages, and mortgage rates now expected to continue rising over the next six months, households are likely to endure a difficult year and the demand for both new housing and improvements works will be hit hard. Infrastructure activity is expected to remain at high levels due to major projects already down on the ground. Even in this sector, however, output is likely to fall marginally compared to last year following the government announcing delays to roads and rail projects
