The RICS UK Construction Monitor Q3 2024 reveals a raft of positive indicators for the coming year.
According to responses gathered from chartered surveyors working in construction across the UK, headline workloads are still largely flat, except for infrastructure sector, but expectations point to activity rising across all sectors over the year ahead.
A net balance of +28 (percentage points) of survey participants predict an increase in workloads over the next 12 months, matching sentiment seen in the previous quarter and highlighting sustained optimism for growth within the sector.
In particular, the infrastructure sector is expected to lead robustly. Although slightly lower than Q2’s projections, a net balance of +30 of respondents anticipate increased activity in infrastructure development.
Meanwhile, the private residential sector has shown a rise in confidence, with +26 of survey participants predicting growth, an improvement from the +12 average reported over the past four quarters. Additionally, private non-residential construction is projected to pick up momentum, supported by a net balance of +17 of respondents.
Surveyors were also asked about construction industry skills shortages. Respondents cited bricklayers (37%), carpenters (33%) and plumbers (33%) as the most depleted roles currently. Shortage of general labour (44%) was also highlighted as a factor limiting construction activity.
However, the general outlook for employment remains positive with a net balance of +18 of survey respondents forecasting an increase in employment over the next year. Although slightly down from the previous quarter’s +23, the expected increase in employment highlights a resilient demand for skilled professionals within the industry, RICS said.
RICS senior economist Tarrant Parsons said: “These results show some encouraging signs of improvement for the UK construction industry as we move into the final quarter of the year.
“While growth prospects for the next twelve months appear to be brightening, challenges persist, particularly around tight profit margins across the industry and ongoing skills shortages. Industry professionals anticipate an improvement in credit conditions over the year ahead, which should provide a much-needed boost to industry confidence.”
