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What to expect in the latter half of 2024
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What to expect in the latter half of 2024
The UK construction industry is in for a mixed bag in the latter half of 2024. While forecasts predict growth, challenges like inflation and skills shortages persist. Here's a breakdown of what to expect:
Reasons for Optimism:
- Positive Momentum: The Purchasing Managers' Index (PMI) indicates growth in construction output for three consecutive months, with commercial building leading the charge [construction leadership council monthly construction update].
* Infrastructure Investment: Government spending on infrastructure projects is expected to continue, providing stability to the sector [UK construction sector expected to recover from 2024].
Persistent Challenges:
- Inflation and Interest Rates: Rising costs of materials and labour, coupled with higher borrowing rates, may dampen private sector investment and housing starts [3 Challenges Facing the UK Construction Industry In 2024].
* Skilled Labour Shortage: The industry continues to grapple with a lack of qualified workers, potentially hindering project completion times.
Overall:
The second half of 2024 is likely to see a gradual improvement in the UK construction industry, but not without hurdles. Infrastructure projects and a pick-up in commercial construction should provide some buoyancy, while residential housing may see a slower recovery. The new Government has promised a real boost to housing but this is not without challenges.
