BUILDING INTELLIGENCE Q2 2018

摘要

UK GDP increased by 0.4% in the second quarter of 2018 -1.3% up on the same quarter last year. The economy has recovered some ground since the recession but Brexit is set to hamper economic progress, with GDP growth expected to average 1.6% per year in 2018-22, compared with 2.6% in 1981-2008. Between April and June 2018 total construction output rose by 1% to £40.87bn (in 2016 prices) compared with the same period in 2017. The public housing market contributed to this with a 3% rise to £1.6bn over the same period. The sector is expected to grow by 3% a year over the next three years. While recent plans to encourage council housebuilding will boost output, the fall in business investment triggered by the uncertainties around Brexit will affect social housing providers' ability to raise finance. We expect no change in 2018, with moderate recovery in 2019 and 2020.