Market forecast: Weathering the storm

storm

The UK is now clearly heading into recession but strong momentum in construction output should help to insulate our sector, despite only slightly slowing cost pressures

01 / Summary

Tender price index â–²

Tender prices increased by 10.9% in the 12 months to Q4 2022. Price inflation trends will persist over the first half of 2023, as supply‑side problems and construction output momentum combine.

ºÚ¶´ÉçÇø cost index â–²

A composite measure of building input costs increased by 8.5% over the year to November 2022. A slower rate of input cost inflation is helpful, although it is still elevated by historical measures.

Consumer prices index â–²

The consumer prices index rose by 10.7% in the 12 months to October 2022. Consumer price inflation seems to be reaching its peak and looks likely to slow this year.

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