Market forecast: Demand is set to rise as the economy stabilises

By Brian Smith 2024-10-07T06:00:00

Demand is set to strengthen as economic stability stimulates a recovery in private sector investment, but contractor capacity is depleted and risk aversion elevated

01 / Summary

Tender price index ▲

Tender prices rose by nearly 1% in Q3, according to Aecom’s tender price index, and the rate of inflation is forecast to accelerate modestly from the fourth quarter in response to rising delivery costs and strengthening demand.

Building cost index ▲

Costs rose by 1.8% in Q3 as shortages of skilled labour continued to fuel wage inflation. Materials prices broadly stabilised but trends vary widely across product groups.

Consumer prices index ▲

The headline annual rate of consumer price inflation rose to 2.2% in July, up from 2.0% in June. Core and services inflation rates continued to moderate, and the price of goods contracted marginally.

This is PREMIUM content, available to subscribers only

You are not currently logged in. Subscribers may LOGIN here.

SUBSCRIBE to access this story

SUBSCRIBE for UNLIMITED access to news and premium content

A subscription will provide access to the latest industry news, expert analysis & comment from industry leaders, data and research - including our popular annual league tables. You will receive:

Print/digital issues delivered to your door/inbox
Unlimited access to building.co.uk including our archive
Print/digital supplements
Newsletters - unlimited access to the stories behind the headlines

Subscribe now

Get access to premium content subscribe today