Skip to content

UK market view: Q3 2023

Construction continues to grow amidst considerable headwinds 

 

Key takeaways

Mace maintains its 2023 tender price forecast at 3.0% for London and 3.5% for the rest of the UK

Construction output increased by 0.3% in Q2 2023, driven by repairs and maintenance

The industry faces challenges from high inflation, interest rates, and political uncertainty

UK market view: Q3 2023

Read the full report

Download

The last three months have seen the economy continue to (just about) grow. GDP rose 0.2% in the second quarter, with construction output rising 0.3%. It is hard to describe such performance as anything better than modest, and it appears doubtful that conditions will pick-up anytime soon.  

While pay is now growing faster than inflation, real incomes are lower than they were at the end of 2021. With interest rates continuing to rise, and a growing number of households remortgaging at higher rates, pressures on spending remain problematic.  

None of this is surprising, and nothing has noticeably improved or worsened since our previous report. As a result, and against such a backdrop, we are leaving our tender price forecasts unchanged.  

This is not to say that we are complacent about the challenges facing construction. Download our Q3 market view to find out more. 

Related insights

Ask us a question