According to the Construction Product Association (CPA) latest forecasts, the construction industry will grow by 10.0% over the next two years. The association is forecasting that construction output will grow by 4.7% in 2014 and 4.8% in 2015 and over the next five years the output will rise by 22.2%.
Private housing starts are expected to grow by 18.0% this year and 10.0% in 2015, while commercial office construction output should grow by 10.0% this year and 8.0% in 2015;
CPA economics director Dr Noble Francis said:
“The forecasts reflect the increasing strength of the sector, though risks remain. We anticipate the recovery will continue through the forecast horizon in 2018 and broaden both across sectors and regions. Overall levels of activity will likely match their 2007 peak in 2017.”
“In the short-term, the activity will primarily be led by private housing, infrastructure and commercial. Notably, in the long-term, we expect this activity will be boosted by work on schools and hospitals.
“The private housing sector continues to benefit from the improving economic backdrop and government policy measures, with housing starts expected to grow 18.0% in 2014 and 10.0% in 2015. The pending general election, however, will cast the future of housing policies into doubt. Such uncertainty, together with questions about affordability and higher mortgage repayment costs, will likely subdue private housing growth to 5.0% per year from 2016.”