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flag UK construction growth forecast lowered to 1.7% in 2026 due to weak housing demand, rising costs, and falling confidence.

flag The UK construction sector's 2026 growth forecast has been cut to 1.7% from 2.8%, driven by weak housing demand, rising costs, and falling confidence. flag Private housing output is expected to grow just 1.5%, while repairs and improvements may decline for a second year. flag Infrastructure remains strong at 3.9% growth, but delays in HS2 and funding gaps threaten progress. flag Rising tender prices, supply chain pressures, and economic uncertainty are straining firms, with some reporting declining profits. flag Without policy support and improved confidence, growth will remain limited to public and energy projects.

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