CPA Summer Forecast shows further uncertainty

CPA Summer Forecast shows further uncertainty

ARTICLE · By Timber Trade Federation · 04 Aug 2020

The UK construction industry is expected to face further uncertainty, according to the Construction Products Association’s (CPA) latest forecasting. This comes despite the government putting the industry at the front and centre of its recovery plans.

Despite activity on site returning slightly quicker than initially expected post-lockdown, the CPA Summer Scenarios still anticipates construction output in 2020 to fall by 20.6%.

Concerningly for TTF members, timbers main market, private housing, is set to shrink in output by a third (33%) in 2020 – making it the worst affected by the COVID-19 crisis. The commercial market is the next most affected, set to shrink by 29%.

According to the CPA, the ‘New Deal’ will have little impact on boosting construction activity beyond what was already expected in the forecast, and the Chancellors Summer Statement suffers from a lack of new funding or clear strategy on the implementation of the £2 billion Green Homes Grant.

Construction output is expected to rise by 18.0% overall next year, however this is from a low base of activity in 2020 and will still be 6.4% lower than pre-coronavirus levels.

Read the full report by clicking the link here.