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27/06/2018

Construction values at five-year low, report suggests

Words: Laura Edgar
Construction / iStock_000010378707

The construction industry’s decline continued into May, with the value of new construction contracts totalling £4.5 billion, 10 per cent down on April and the lowest total for over five years, according to the latest statistics.

Barbour ABI’s Economic & Construction Market Review cites the largest project for May as the £130 million Wembley Stadium Station housing development.

Despite this, the residential sector saw a dip of 5.7 per cent compared with April.

The largest infrastructure project was Clocaenog Forest 96MW wind farm project in Denbigh, which was valued at £100 million.

In May the industrial and education construction areas were the only sectors to produce positive growth, highlights Barbour ABI, increasing by 2.2 and 4.6 per cent respectively when compared with April.

London won the largest share of contract values in May with 18.8 per cent, followed by the East of England with a 14 per cent share and the North West with a 13.5 per cent of contract award values.

Michael Dall, lead economist at industry analyst Barbour ABI, said: “Across May we continued to see the decline in housing and infrastructure construction, with the value of new work in construction reaching its lowest point since January 2013. Whilst it’s encouraging that the industrial and education sectors saw contract values increase, the deficit was too large to make up the shortfall, with both housing and infrastructure continuing in their slump.”

May’s Economic & Construction Market Review can be found on the Barbour ABI website (pdf).


Read more:

Housebuilding construction slumps in April, statistics suggest


Image credit | iStock

Infogrpahic | Barbour ABI

 

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