There was a 16.5% increase in new projects being ordered in the second quarter of 2024, which should give the sector renewed confidence.
Construction output also saw a modest 1% increase in Q3, according to the UK Construction Market Outlook Report by cost and project management consultant Currie & Brow.
Despite this positivity there are still challenges for construction – namely Trump tariffs, contractor insolvencies and labour shortages.
Nick Gray, chief operating officer, UK & Europe at Currie & Brown, said: “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.”
Chancellor Rachel Reeves has promised to invest £100 billion in capital projects over the next five years.
An additional £4 billion is 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.
