Construction contracts

Lack of major projects slows construction in January



The value of new construction contracts awarded in January fell by 10.6% compared with the same period last year to £5.4bn, according to new research.


The latest edition of the Economic & Construction Market Review by industry analysts Barbour ABI has found that residential housing development in the UK had a total value at £1.9bn in January, while infrastructure had a total contract value of £1.7bn.

The sectors combined represented more than 65% of the total value of construction in the period.

Across the industry, education and hotel, leisure & sport sectors both saw monthly decreases in value in January.

The remaining sectors of residential housing, infrastructure, commercial & retail, industrial and medical & health all saw increases on the previous month but overall below the levels of January 2017.

The largest project in January was the £800m Spire London Hertsmere House development at West India Quay in London.

Almost a third of the UK total construction contract award value was in London (32%).

Michael Dall, lead economist at Barbour ABI, said: “The recent collapse of Carillion has not done much for confidence in the sector, which is already facing a number of headwinds.

“Mainly due to a lack of major projects, construction has been held back in January.

“Nevertheless, encouraging figures from the residential housing and infrastructure sector is pleasing, but other sectors now need to help pick up the slack, such as hotel, leisure and sport, which produced its lowest figures in January since October 2015.”



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