RLB_UK_Riders_Digest_2013

UK CONSTRUCTION TRENDS
Market Outlook 2013:
It’s always comforting to think that the year
ahead will be better than the year just past.
And the latest survey from the RICS does
suggest that surveyors see an improvement
in workloads coming in 2013 - unfortunately
much of that improvement may well be down
to winning more work abroad to keep talented
employees in the UK busy.
Whilst this work will contribute to income
in certain sectors, it doesn’t mean the UK
construction market is improving.
The latest figures for construction output show
the industry is continuing to shrink and data
released in January is consistent with a total fall
in 2012 of greater than 8%.
That would be the fourth largest annual collapse
in construction since records started in 1955 -
indicators suggest the industry will shrink further
as this year progresses, which is in line with
industry forecasts.
The construction industry accounts for 10% of
the UK’s GDP and is worth £100 billion. The
construction sector is investment led and is
therefore susceptible to economic downturns
and is inevitably going to be further affected by
the on-going effects of the global financial crisis.
According to the Chancellor’s Autumn
Statement in December 2012, forecasts for
economic growth in the UK are as follows:
1.2% in 2013, 2% in 2014, 2.3% 2015, 2.7% in
2016 and 2.8% in 2017. However, even in 2017
economic activity will not have recovered to prerecessionary
levels.
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