BMI View: We estimate the construction industry returned to weak growth at 1.5% in 2016, after nearlyeight years of contraction. While the industry will remain in positive growth territory over the comingyears, this will average a modest 1.1% annual growth over our forecast period, as a weak domesticeconomic environment and ongoing policy and regulatory uncertainty undermine investor confidence. Thiswill see limited gains in terms of fixed capital formation.
Forecast And Industry Developments
Earlier in 2017 we slightly downgraded our construction industry growth outlook for the year as a resultof weaker than expected residential sector growth. The residential and non-residential sector growthoutlook generally remains unimpressive. Infrastructure sector growth, however, is relatively good,notably in transport, and in power and utilities, with our Power team's optimistic view on opportunities inthe solar and wind power sectors. Nevertheless, the infrastructure sector represents below 20% of totalconstruction industry value. It therefore does little to lift the overall growth rate of the industry.