The report from AMA Research revealed that new work accounted for the largest share, with output growth being particularly strong in the residential new work segment, which recorded a 14% increase in the year.
Renovation maintenance improvement (RMI) output was stronger in the residential rather than the non-residential sector, with overall RMI output rising by 7% in 2017.
The outlook for the housing sector remains positive, with 17% overall growth in residential output currently forecast between 2017 and 2022.
RMI in the residential sector is currently forecast to remain relatively steady, with low annual growth rates highlighting consumer confidence levels.
- DFT Roundtable: Mezzanine finance, joint ventures and equity
- Sadiq Khan launches new construction academy
- Construction workers claim back almost £6m in overpaid tax
The non-residential sector is expected to face more subdued growth into the medium term, with output currently forecast to decline to 1-2% in 2018/19, followed by annual growth of around 3% to 2022.
The retail sector is currently forecast to not perform as well, due to a combination of structural changes within the sector and potential reduction in consumer confidence and spending levels.
Jane Tarver of AMA Research said: “Overall growth in construction output is forecast to reduce to around 2% for 2017/18, but improving to 3% for 2019-22.
“This more modest forecast takes into account the continuing uncertainty surrounding the Brexit process affecting the timing of business investment decisions.”