Glenigan has predicted that the base value of new project starts will experience a 1% rise for the remainder of the year, followed by a 2% increase in 2018.
The news is encouraging, and Glenigan has indicated that since the EU referendum, capital expenditure has gone up, with more public spending forecast, following the General Election last June.
It is believed that the surprise General Election result will mean investment will be focused on hot political headline issues such as social housing in the wake of Grenfell Tower fire or the overburdened NHS, leaving fewer financial resources available for infrastructure projects.
A spokesperson for Glenigan said that uncertainty over Brexit negotiations will inevitably have an impact on the construction industry outlook for the next two years. While a slowdown in economic growth is likely to have an effect on getting new projects off the ground, especially in the private sector, overall activity in the industry should keep expanding.
Elsewhere, the value of new health sector projects appears set to increase by 23% this year and, despite ongoing challenges, education-related construction activity is expected to rebound substantially next year.