Construction Output Predicted to Return to Pre-COVID Levels by 2022 – New Glenigan Forecast

Glenigan’s 2021-2023 Construction Industry Forecast shows activity has rallied, and is on an upward trajectory since the start of the year

• 2022 set to see a return to pre-COVID levels, with underlying project starts up 3% on 2019 levels
• Private housing growth predicted to moderate, as unemployment rises and temporary stamp duty reductions end
• Greater public sector investment fuels recovery with large work programmes planned in education, health and infrastructure
• Rise in office refurbishment as premises are remodelled for post-pandemic working

Today, Glenigan, the construction industry’s leading insight and intelligence experts, releases the widely anticipated Construction Industry Forecast 2021-2022.

Its central prediction is that construction output will return to pre-COVID levels by 2022, with underlying starts 3% above 2019 levels. (The data has had projects of over £100m removed to give a clearer view of the UK construction landscape)

This forecast provides a comprehensive overview of where the construction industry is, in the here-and-now, combined with considered and fact-based forecasts of how the sector will perform over the next two years.

An Industry Ascending

Although COVID-19 had a significant impact on the UK construction sector, evidenced by a significant dip in output during 2020, the first half of 2021 has seen a gradual rise towards pre-pandemic levels.

Significantly, the value of underlying project starts (during the three months to May 2021) rose by 20%, and was 70% higher than when the UK was in the midst of the first national lockdown a year ago. 

After this sharp initial upturn, a steadier progressive strengthening in project starts is anticipated over the forecast period. However, the recovery will not be evenly spread, with some regions and sectors performing better than others, reflecting a changing UK economic and social landscape.

For further details and to download the Forecast, click here.

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