After a volatile 2017 and a poor start in January, February has not fared much better for the construction industry, with the value of new contracts awarded at £4.9 billion, which is 24 per cent lower than at the same time last year.
The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI highlights 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 last month - even with the largest overall project in February being the £350 million Hinkley Point C.
Outside of the Hinkley Point project, the three biggest projects in February were all London based, 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.
Commenting on the figures, 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. With uncertainty surrounding the industry and economy in general, improvements in various sectors should instil confidence, despite the overall figure being subdued.”
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