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Construction industry’s decline continues

The construction industry has been awarded contracts worth £4.9 billion in February 2018, which was 24 per cent lower than the same time last year, according to new statistics.

Economic & Construction Market Review from industry analysts Barbour ABI highlights the levels of construction contract values awarded across Great Britain.

Residential housing dominated the construction sector across February, with a total contract value of £2.1 billion – its highest figure for six months. Conversely, infrastructure contract value decreased by 48 per cent compared with the previous month.

The three biggest projects in February were all London-based, outside of the Hinkley Point project. These included the £196 million 1 Triton Square office project, a £110 million residential development named the ‘Perfume Factory’ and The Minories Estate redevelopment worth £100 million.

Regionally, London also led other regions with a contract award value at 25 per cent of the UK total. The South West followed with 17 per cent of the contract award value, and the North West with a 13 per cent share.

The education sector followed infrastructure as the only two sectors that saw a decrease in monthly figures. Infrastructure’s decline from £1.7 billion to £875 million was too great of a loss for the rest of the industry to play catch-up, even as all other sectors saw an increase in construction contract values.

Michael Dall, lead economist at Barbour ABI, said: “Whilst the slide in Infrastructure is disappointing, it is encouraging to see the increases in value for the majority of the construction sectors, particularly commercial & retail, which was in the midst of a three-month slump.

He added: “With uncertainty surrounding the industry and economy in general, improvements in various sectors should instill confidence, despite the overall figure being subdued.”

Image credit | iStock

Infographic |  Barbour ABI