23% growth expected in construction industry by 2018 with £12 billion being contributed to the British economy over the next 2 years according to the Construction Products Association (CPA) autumn forecasts.

Output is forecast to increase 4.8% in 2014 and by a further 5.3% in 2015.

18% growth in private housing starts is expected for this year and 10% over the next, with the private commercial sector on track to increase by roughly 3.7% and 6.1% next year.

The CPA has also forecast road construction to increase by roughly 46.1% by 2018 and 118.2% in energy infrastructure.

There are several risks still to be wary of, the strength of the UK and Eurozone economies, shortages of labour and materials and the result of the 2015 general election.

 

"Our Forecasts reflect a welcome, recurring theme as growth continues and begins to broaden. Short-term activity is still led by private housing, infrastructure and commercial, and areas of public sector construction are showing the first signs of increasing strength. We believe the expansion will continue through 2018. 

Recovery is not a foregone conclusion however, and several important risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 General Election and the impact of any supply constraints such as the scarcity of labour and building materials.

The Association's central forecast estimates that construction output will rise 4.8% in 2014, a marginal change from the previous 4.7% estimate. Output is forecast to rise a further 5.3% in 2015, an upward revision from 4.8% growth in the Association's Summer Forecast due to the continued strength of the UK economy."

         - Dr Noble Francis – Economics director of the CPA