Construction sector fights to grow past its capacity pressures

We’ve been harping on for quite a while about capacity constraints in the construction industry, sounding cautionary notes about the possible limitations that those capacity pressures could place on growth. Our most recent building forecasts, published in April, saw a moderation of our outlook for growth in the residential sector, while we held to our view that non-residential work would soften throughout 2017 as the pipeline of new work coming through was squeezed by rising costs.