Core Five publishes the October edition of its Central London Update

We have recently published our Central London Update, including our forecast for tender price inflation through to 2018. If you would like to receive a copy please get in touch.

Alternatively if you would like to discuss how our construction economics can be of further use to you and your projects, please get in contact with our Head of Strategic Research Kelly Forrest.

In summary preliminary GDP figures for Q3 suggest that the construction sector’s 36 month run of uninterrupted growth came to an abrupt end. A 2.2% contraction in construction output was a major constraint on broader economic growth. The emphasis, however, must be placed on ‘preliminary’. Preliminary estimates of construction output are based on a subset of the information that will eventually be incorporated into the estimate, less than 50% in fact. Consequently, significant revisions are not unusual. What happens in Q4 will be pivotal.

Based on current evidence, the outlook for demand is relatively strong, and a further tightening in the supply chain capacity available will continue to have a strong influence on contractors’ tender pricing decisions over the short term. Measures to replenish capacity have simply failed to keep pace with the acceleration in output growth in the London market.

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