Survey evidence continues to paint a positive economic picture, and we expect GDP growth of 2.5% in 2015, close to the long-term trend, slowing slightly to 2.4% next year.
Unbalanced growth will continue with exports sluggish but consumer spending and incomes positive.
With ‘core inflation’ (which excludes more volatile prices of food, drink and energy) running at 0.8%, the risk of a harmful period of deflation remains low and the consensus view expects a modest rise in CPI to 0.8% by the end of the year.
This should mean a delay in the first base rate rise until early 2016.
A review of the construction market covering the economic and property market outlook for development, movement in
materials, labour costs and tender prices, and the medium term outlook for the sector.