Search

16.5% surge in new orders boosts confidence for UK construction industry

Confidence is returning to the UK construction sector, driven by a 16.5% surge in new orders in Q2 2024. The most recent UK Construction Market Outlook Report, published today by leading cost and project management consultant Currie & Brown, also highlights a 1% overall increase in construction output in Q3.

The UK Chancellor’s recent promise to invest £100 billion in capital projects over the next five years will provide an additional boost to the overall project pipeline. Specifically, the additional £4 billion earmarked for education, including £1.4 billion for the school rebuilding programme, and £500m in new funding for the Affordable Homes Programme, bringing total investment in housing supply to over £5 billion, will provide some much-needed stimulus.

With inflation now relatively low at 2.3%, and the Base Rate cut to 4.75%, the current macroeconomic context adds to the certainty for the industry in the short- to medium-term.

Taken together, the data from the report provides welcome relief for a sector which, in recent years, has been plagued by ongoing volatility in the supply chain and labour market.

However, there are still issues of concern; Not least of which is a continuing lack of clarity from central government about supply and resource capacity in the industry. Additionally, the tax-raising measures in the recent Budget, including an increase to employers’ national insurance contributions, could do more to stifle private sector investment than encourage it.

Nick Gray, Chief Operating Officer, UK & Europe at Currie & Brown comments: “The construction industry looks set for a period of further growth, driven by bold investment from the government and stabilising economic conditions in the UK. At the same time, it’s encouraging to see the industry’s focus on innovation through the adoption of Modern Methods of construction, better data and new technology. But we cannot afford to be complacent. Against a still unpredictable geopolitical backdrop, firms must remain agile. Curation of advances in digital technologies like AI to enhance project efficiency and adopting two-stage tendering will be crucial to building and maintaining resilience as the UK’s economic and political landscape unfolds.”

Find out more about the challenges and opportunities in the UK construction industry by reading our latest market outlook report.

Looking after your data

Thank you for your enquiry. We believe strongly in protecting your privacy. If you are sending us a CV please send it to us via our recruitment pages which can be found here. Our privacy policy explains what information we gather about you, what we use that information for, and who we give that information to. It also sets out our rights in relation to your information and who you can contact for further information or queries. Our full privacy policy can be found here