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Infrastructure growth predictions slashed

Infrastructure bw

Forecasted infrastructure growth has been slashed by 10 percentage points in a study released this morning, with anticipated delays across the sector to blame.

The Construction Products Association (CPA) said the sector would grow by 25% in the three years to the end of 2019.

But this was down from a figure of 35% growth when forecasts were released just over three months ago.

CPA economics director Noble Francis said: “We have pushed back to after 2019 some of the growth we had anticipated in the spring forecast.

“The key part of it is yet another delay to main works at Hinkley Point C announced in July. This means we don’t have main works at Hinkley in the forecasts.

“There are additional concerns regarding delivery of roads and rail projects under five-year spending plans.”

EDF Energy last month warned that Hinkley Point C could cost £1.5bn more than first thought and risked being delayed by as much as two years.

Network Rail last month revealed it could be £50bn in debt at the end of control period 5, while the Office for Rail and Road earlier this year warned that Highways England had not demonstrated affordability of its capital plans to 2020.

Overall construction output is forecast to rise by 1.6% this year and just 0.7% in 2018.

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