In Wales, the sharp contraction in new work output seen during 2012 gave way to growth of 10 per cent in 2013.
Underpinning this were strong upturns in the private housing and infrastructure markets. Both markets are set to increase again in 2014, although at weaker rates than in 2013.
Private housing output, which increased by 21 per cent in 2013, is forecast to experience weaker growth, with the market peaking in 2015 – possibly before.
As with other regions, the recent housing upturn is not considered sustainable, especially given that the median house price to median earnings ratio in Wales is currently 7:1, compared with 4:1 before the previous decade’s boom.
In the commercial market the odd large project, such as the £100m Friars Walk retail scheme in Newport, will help.
In the industrial sector new-build volumes are forecast to remain relatively weak, with a very low value of warehouse work.
Infrastructure and public non-housing will benefit to some extent from recently announced capital spending measures, as well as sporadic major projects such as the new £250m prison at Wrexham.