The Construction Products Association’s (CPA) Autumn Forecasts revealed that this is a revision down from the 0.7% growth forecast in the summer publication due to a weaker economic backdrop.

Now, while UK interest rates are likely to have reached a peak that is lower than previous expectations, it is now anticipated that they will remain at this level until 2025 due to stubborn inflation.

Consequently, the UK economy is expected to flatline throughout 2024, holding back the recovery in major sectors of construction activity such as new build housing and repair, maintenance, and improvement (RMI) to 2025.

Furthermore, in infrastructure, output is now expected to fall marginally as more road projects appear likely to be pushed back or cancelled than anticipated only three months ago.

Nevertheless, activity will remain near the current high levels due to work continuing major projects already down on the ground.

Meanwhile, the sharp increase in mortgage rates since the end of last year has led to house builders reporting a 30-40% fall in demand and it has remained weak throughout Summer and early Autumn.

Interest rates and mortgage rates are expected to remain high for longer and adversely affect demand throughout next year.

As a result, after a 19% fall in completions and output this year, completions are forecast to remain flat in 2024 with no growth until 2025.