BCIS issues five-year construction industry forecast

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Building costs will increase by 15% over the next five years, while tender prices will rise by 19% over the same period, according to the latest construction forecast data from the Building Cost Information Service (BCIS).

With demand in the sector continuing to contract, overall output is expected to fall by 5.5% in 2024, compared with last year.

The expected decline is mainly a result of decreased output in the housing, private commercial and industrial sectors.

Growth is expected to return in 2025, with total new work output increasing 20% by 2Q2029.

Dr David Crosthwaite, Chief Economist at BCIS, said: “As long as the cost of borrowing remains elevated, construction output is likely to suffer continuing declines.

“This is especially the case in the private sector, because it’s a major barrier to

 link source - Construction Media

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