Construction Industry Forecast (Winter 2021)
20 January 2021
Construction output is anticipated to rise by 14.0% in 2021 after falling 14.3% in 2020. Further growth of 4.9% in 2022 is expected to ensure that construction output at the end of next year surpasses 2019’s levels of output.
The CPA’s latest Construction Industry Scenarios sees a ‘W’-shaped economic recession and recovery as its main assumption, with construction output expected to rise 14% in 2021 and 4.9% in 2022. This takes into account the new lockdown restrictions over winter 2020/21 before a sustained recovery from 2021 Q2 as vaccines are rolled out and the services-based economy can reopen again. While some sectors of construction are dependent on consumer and business confidence returning, construction activity has largely been able to bounce back quicker than the overall economy.
