Forecasts for public housing have been downgraded in the wake of the chancellor’s March 2016 Budget.
Data from forecaster Leading Edge suggests output in the public housing sector will shrink by 16.7 per cent between 2015 and 2020, with the firm’s managing director Mel Budd describing the government’s policies as “a cocktail of downwards pressure” on the sector.
In contrast, Leading Edge has upgraded its forecasts for the infrastructure and private housing sectors, which will be the two largest contributors to output growth over the next four years.
Output growth by sector 2015-20_Leading Edge
Source: Leading Edge
The industrial sector will also benefit from a downturn in retail spending, as large retailers and supermarkets shift from big-ticket supermarket stores to logistics and warehousing.
You can find full analysis of Leading Edge’s forecasts here.