Construction output has positively increased by 8% in 2017 compared with 2016, taking the total value to a staggering £163.5bn! The report from AMA Research uncovered that new work accounted for the largest share. Output growth revealed to be particularly strong in the residential new work segment which saw an increase of 14% in the year.
In 2017, renovation maintenance improvement (RMI) output was stronger in the residential, as opposed to the non-residential sector, showing a rising of 7%. The outlook for the housing sector also remains positive, with statistics showing a 17% growth in residential output.
RMI in the residential sector is currently predicted to remain relatively steady, with low annual growth rates emphasising consumer confidence levels. The non-residential sector is expected to have an annual growth of 3% to 2022.
Jane Tarver of AMA Research states:
“Overall growth in construction output is forecast to reduce to around 2% for 2017/18, but in 2019 to 2022 we will see an improvement to 3%.
The unclear prediction takes into account the ongoing uncertainty the sector faces due to the unknowingness surrounding Brexit which has affected the timing of business investment decisions.”
by Steve George