Tender price indicator
The pause in demand for new orders is starting to bite as uncertainty over UK economic growth remains.
Our forecast for 2018 is for a slowing in construction opportunities with the rate of price growth reducing due to market constraint and single stage tender action making a resurgence.
Headline rates of tender price inflation for 2018 are down to 1% for the UK average and a median of 0% for London, with more prospect of downside than upside pricing.
2019 headlines remain unchanged at 1.5% UK average and 1% London median, whilst forecasts for 2020 and 2021 have reduced by 0.5%.
Material input costs are continuing to record increases with most indicators of building components reflecting 2.3% to 3% growth per annum.
The Consumer Price Index (CPI) measure of inflation continued to rise in the quarter reaching 2.9% in May, before dropping to 2.6% in June.