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UK construction sector continues to be slow

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World Cement,

The UK construction sector’s slow start to the year continued throughout February, with the industry struggling to regain the successful form amassed in 3Q and 4Q15.

According to the latest Economic & Construction Market Review from Barbour ABI, total construction contract value for February came to £5.6 billion. This is an increase of 4.2% compared to January, but is still significantly lower that the £7.9 billion recorded in November.

More positively however, renewable energy continues to thrive, with the sector showing no indications that it is slowing down after the recent subsidiary cuts. The East Anglia One offshore wind farm is easily the biggest construction project awarded in February, costing £1.8 billion.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “After another slow month in February, it’s clear that overall construction performance hinges heavily on the residential sector, in particular private housing. Even with residential increasing its total contract value compared to January, it is still well below the figures of the fourth quarter in 2015. However, steady improvement from the Infrastructure and Commercial & Retail sectors could significantly help remove the reliance the industry has on housebuilding contracts.”

“Overall consensus is that construction activity remains on track to grow, with a solid pipeline building up over the spring and summer months. The industry is still growing at a steady enough pace, but as previously stated, more growth from the infrastructure and commercial & retail sectors would provide a substantial boost.”

Adapted from press release by

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