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Into the slow lane
Ever since the invasion of Ukraine unleashed chaos in materials and energy markets, we have been anticipating a slowdown in the construction sector. In practice, it has been slow to arrive, with the market remaining resilient right through into Spring 2023. However, there is now increasing evidence that the expected change in market conditions is happening
Summer Market View:
Since our last Market View in March, a range of survey and sentiment indicators have pointed to an improvement in the state of the UK economy, albeit from a low base. The latest IMF forecast, for instance, now predicts UK GDP will grow 0.4% in 2023. A month earlier, they had said that UK PLC would contract by 0.3%. This uplift reflects stronger wage growth, a supportive fiscal policy, and a faster easing of energy prices. Both the Bank of England (BoE) and the Office for Budget Responsibility (OBR) have also improved their short-term outlook for the UK in their latest reports.