UK Construction Market Forecast 2011 - 2015

UK Construction Market Forecast 2011 - 2015 : Total construction output in GB in 2010 was 100,824m at constant 2005 prices, up by 6.4% on 2009. This was higher than most commentators were predicting, mainly because of the strong performance in the public sector throughout 2010. Construction output in Q4 2010 was up 7.9% on 2009, while output in Q3 and Q4 combined was up by 9.6%

Total new orders in Q4 2010 were up by 4.4% on a year earlier, while the figure for Q3 and Q4 combined was down by 4.9%. The fall was mainly due to a strong performance by infrastructure in the latter part of 2009. Total construction output for 2011 at constant 2005 prices is forecast. Although this is an improvement on the previous forecast made in October on the figure for 2010. This decrease is bigger than previously forecast, mainly because of the unexpectedly high figures for Q4 2010 and means a double dip recession for the construction sector.

On the positive side, total construction output in 2011 is forecast to be 3.9% higher than 2009. However, it will still be 9.0% below the 2007 peak. In 2011 we expect to see major falls in output in all the public sectors, including both new build and R&M, as the government's cuts start to bite. However, we expect all the private sectors to see growth during 2011, which will offset some of the falls in the public sectors.

We forecast that output for 2015, at 104,300m, will still be over 7.5% lower than the 2007 peak of 108,300m (at constant 2005 prices) but higher than 10 of the 15 preceding years. The impact of the Comprehensive Spending Review (CSR) will be painful for many businesses reliant on the public sector for a significant proportion of their workload. All but one of the government departments that have the biggest influence on construction output, Energy and Climate, will see their capital budgets reduced over the next 4 years. Across the key departments the total cuts will reduce capital budgets by 40% (excluding inflation) by 2014/15.

Key Topics Covered:
1. Executive summary 2. The UK Economy 3. Output forecasts by construction sector i. Summary of output: actual and forecasts 1986 - 2014 ii. Housing sector - public and private iii. Infrastructure sector iv. Public sector v. Industrial sector vi. Commercial sector vii. Repair & Maintenance housing sector viii. Repair & Maintenance non housing sector 4. Quarterly historic new output by construction sector - current prices 5. Forecasts by selected building material sectors i. Summary of output: actual and forecast 1990 - 2015 ii. Output graphs: Bricks, blocks, RMC, cementitious materials Read More... For the latest updates PRESS CTR + D or visit Stock Market news Today

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