Introduction
While the UK economy moved out of recession and back into growth during Q1 2024, construction industry output lagged – contracting by 0.9 percent compared to Q4 2023.
Construction sector wage inflation nearly halved during the three months to February and the value of new orders placed in Q1 surged by 15.9 percent compared to the final three months of 2023.
This rise in the value of new orders has been strongest in public sector and commercial real estate. Many programmes commencing this year may have a construction phase and operational lifetime of 50 years or more, which will clearly be impacted by multiple political and economic cycles.
For example, on the immediate horizon is the UK’s general election, scheduled for 4th July. This election could bring about a different emphasis on industrial strategy, as well as investment plans to deliver growth. A clearer picture of what lies in store, both for the economy and the construction sector, will emerge when manifestos are released.
This edition of our UK market intelligence report will explore how programmes can be set up to be both robust and responsive in the face of repeated change – enabling asset owners to achieve lifetime success.
At a glance
-0.9%
Construction output fell by 0.9 percent in Q1 compared to Q4 2023, the same rate of decline recorded in Q4.
15.9%
The value of new orders increased by 15.9 percent in Q1 2024 compared with Q4 2023.
3.4%
Construction sector nominal wage growth eased to 3.4 percent in year to February, down from 6.4 percent in December.
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