The Construction industry in United Kingdom registered an output value of USD 445,892.40 million in nominal terms in 2021
The indicator recorded a historical growth (CAGR) of 1.92% between 2018 and 2021, and is expected to grow by ...
GlobalData projects the indicator to grow ...
UK Construction Market Analysis
The UK construction industry is set to expand in real terms – recovering from an annual decline in 2020. The strong growth in 2021 mostly reflects the low base effect of 2020; construction output in 2021 was below the pre-pandemic levels. The construction industry registered strong growth in the first three quarters of 2021, this growth was supported by a rise in both repair and maintenance and new works.
The industry is expected to grow in real terms in 2022. The industry’s output over the forecast period will be supported by investments in the transport, renewable energy, housing, automotive and manufacturing sectors. In October 2021, the government announced details of the Autumn budget and Spending Review 2021 (SR21). It includes significant capital investment on rail, road and housing projects.
A downside risk to construction investments in the short-term could arise due to shortages of key construction materials, high prices for such materials, and the emergence of the Omicron variant of the virus, which could weigh on consumer and investor confidence, thereby affecting revenue and investments decisions.
Output value means the total revenue of construction services during a set period. It is the sum of receipts from domestic construction, net receipts from construction activities abroad, receipts from products sold, receipts from industrial services carried out for others, receipts from goods sold in the same condition as purchased less the cost of goods sold, value of fixed assets produced, and changes in inventories of finished products and work in progress. It covers all forms of construction activities, including new builds, renovation, repair and maintenance, and demolition, and the three cost types: construction services, construction materials and construction equipment. Nominal data, also referred to as current prices data, includes changes in prices as well as changes in actual volume. Therefore, growth rates in nominal terms can overstate the pace growth in construction activity if there is high inflation that is reflected in rising prices for key inputs.
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