BCIS construction industry predictions for 2023, UK Building Output, United Kingdom Housebuilding Guide
BCIS construction industry predictions in 2023
25 Jan 2023

BCIS predictions for the construction industry 2023
Comments from Dr David Crosthwaite, Head of Consultancy Services at the Building Cost Information Service
The construction industry starts the year in a strong position. But 2023 will be a tough year for some sectors of the industry as demand falls. However, it has proved itself resilient to many challenges over the past few years.
BCIS predictions for the construction industry 2023 News
What we?re expecting
? A recession with GDP falling 1.2% (2023 on 2022)

? The annual rate of general inflation, as measured by the RPI, to fall to 6.6% at the end of the year
? Interest rates up to 4% by the end of the year

? Fall in new work construction, output down 6.2% (2023 on 2022)

? A slight fall (-0.8%) in material price

? Building cost rising 2.5%, due to pressure from labour costs

? Tender prices rising 1.1%

? Public sector demand to hold up

? The latest economic figures suggest that the recession may not be as bad as expected.
It?s expected that the government will continue to view capital investment as an engine for growth, which means that existing construction plans should be honoured in the Spring Budget (due on 15th March).
Private sector demand to fall
Private sector investment, particularly in housing, is likely to be hit by the double whammy of interes...