Market forecast: Into the headwinds

By Michael Hubbard2022-08-03T05:00:00

Output has recovered almost to pre-pandemic levels, but optimism is falling in the face of inflation, recruitment challenges and red tape

01 / Summary

Tender price index ▲

Tender prices rose 9% over the 12 months to Q2 2022. Elevated price inflation will continue for the rest of 2022, as an enduring mix of supply-side factors affect the economy and the building sector.

Building cost index ▲

A composite measure of construction input costs increased by 11.4% over the year to Q2 2022. High inflation is set to remain part of the commercial picture for some time.

Consumer prices index ▲

The consumer prices index rose by 9.1% in the 12 months to May 2022. This is the highest annual rate in 40 years.

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