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Infrastructure contract value continues to decline – stats

Words: Laura Edgar
Housing construction / iStock-641025504

The value of new construction contracts in March saw a monthly increase of 8.7 per cent to £5.3 billion, but the infrastructure contract value recorded a month-on-month decrease.

Industry analyst Barbour ABI’s Economic & Construction Market Review suggests that residential housing had a contract value of £2.4 billion. This is the highest figure for seven months, Barbour ABI highlighted.

In comparison, the total infrastructure value decreased by 26 per cent compared with February, continuing the month-on-month decrease.

The two biggest projects by value were both residential. The Longridge neighbourhood centre in the North West, which includes 256 houses, is valued at just under £160 million. Taking the second spot in the top 10 valued projects in March is Hale Wharf, a mixed-use residential development in Tottenham Hale, valued at £100 million.

Education, commercial and industrial projects featured in the top 10 too, but the only infrastructure project is enabling work of phase two for Pinewood Studios. It is valued at £45 million.

Barbour ABI said all other sectors saw an increase in contract value in March, compared with February, with the biggest increase coming in medical and health construction. It reached £200 million.

The South East topped the regions, with 18.5 per cent of the contract award value, thanks – the statistics suggest – to the £70 million Cumberland Place student accommodation project and the Pinewood Studios development.

The North West had 15.9 per cent of the contract award value, while London had 14.6 per cent of the total value. Scotland has a 5 per cent of the total value, while Wales has 4 per cent.

Michael Dall, lead economist at Barbour ABI, said: “The continuous decline of infrastructure construction contracts and in particular big-ticket infrastructure projects will not help to repair the sliding confidence across the industry, which is masking better growth across the other sectors of the industry, in particular the encouraging figures coming from medical and health construction and the strong growth from residential construction.”

Economic & Construction Market Review for March can be found on the Barbour ABI website.

Image credit | iStock

Infographic | Barbour ABI