Market forecast: Why viability is tight for construction projects in the UK

By Pablo Cristi Worm 2025-04-09T06:00:00

Global uncertainty, combined with domestic regulatory change, a fragile demand outlook and expectations around inflation are combining to create tricky conditions.聽聽It鈥檚 a finely balanced equation with many moving parts. Pablo Cristi Worm of Aecom reports

01 / Summary

Tender price index 鈻�

Tender price inflation accelerated to 3.2% on the year in Q1 2025, up from 2.5% in Q4 2024 in anticipation of higher direct labour cost from April.

黑洞社区 cost index 鈻�

Aecom鈥檚 building cost index increased to 3.3% on the year in Q1 2025, an uplift compared with the 1.8% quarter-on-year change recorded in Q1 2024, due to stronger industry wage growth.

Consumer prices index 鈻�

Headline consumer price inflation accelerated to 3.0% in January, up from an annual rate of 2.5% in December 2024. Services inflation increased from 4.4% annually in December to 5.0% in January.

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