Report Published: "United Kingdom Infrastructure Report Q2 2016"

From: Fast Market Research, Inc.
Published: Fri Apr 29 2016


We maintain our forecasts for construction industry value real growth in the UK at 3.5% for 2016 , with our 2015 estimation coming in on the mark . R esidential building will drive this growth over the coming five years as government attempts to boost output , although we do not expect targets to be met. We are now highlighting the upside potential to our long-term infrastructure forecasts as major rail projects move forward, although note new nuclear power and airport investments are not yet factored into our forecasts.

Latest Updates And Structural Trends

We have increased our forecasts for the residential building market, which will remain buoyant - averaging real growth of 4.2% between 2016 and 2020. By 2017 local councils must submit plans to help the government reach its target of building 200,000 starter homes by 2020 or they will be forced to do so by central government.

Full Report Details at
- http://www.fastmr.com/prod/1152823_united_kingdom_infrastructure.aspx?afid=301

Several major infrastructure projects are yet to be fully factored into our forecasts due to slow progress on investment decisions, but already the UK has Europe's largest infrastructure project pipeline. We currently forecast average annual real growth in infrastructure of 6.3% over our forecast period. The upside to this has been added to by the 2016 budget announcements that the government will support HS3 and Crossrail 2 - both multibillion pound projects.

We hold a muted outlook for the non-residential building segment, largely on account of the upcoming EU referendum which we expect will heavily impact on business investment. Regardless of the outcome, the uncertainty over the impact of a vote to leave will see business hold off on expanding capacity. Furthermore, government austerity continues to see social housing, education and healthcare infrastructure suffer from a lack of investment.

Risk/Reward Index

The UK remains a top performing market in our Infrastructure RRI for Western Europe and North America in Q216, with a score of 72.5

The large size of the UK's construction sector and continuing investment - especially in the rail sub-sector - help the country achieve an Industry Rewards score of 57.5.

The UK scores well in global terms in the Country Rewards Index, with a score of 88.9. The UK has a long established and strong financial market, which is ideal for the infrastructure industry's need for long-term capital.

The United Kingdom Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

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Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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