Construction output is expected to rise by 5.3% in 2015 and 17.8% by 2018 according to the latest forecasts from the Construction Products Association (CPA).

However, the growth is expected to slow in the medium-term due to election uncertainty and capacity constraints.

Dr Noble Francis, Economics Director of the Association, commented: "Last year's recovery in construction was driven primarily by 18.0% growth in private house building. This year, industry growth will be more broad-based as further a further increase of 10.0% in private house building is expected to be supported by 8.0% growth in commercial offices and 7.9% growth in new infrastructure.


"Growth rates across most of the industry are expected to slow in 2016 and 2017 because of uncertainty regarding the General Election in May, which could give pause to both contract awards and industry investment. Whilst this is unlikely to impact construction activity this year, due to the lag between contracts and activity on the ground, it may have an adverse effect on output in both 2016 and 2017."

(CD/JP)