According to Barbour ABI’s latest ‘Economic Construction Market Review’, the total value of new construction contracts awarded in the UK in January 2015 reached £5.5 billion, based on a three-month rolling average. This is 4% higher than in December 2014 but 0.8% lower than in January 2014. The number of construction projects grew 38% m/m in the first month of this year. However, Barbour ABI notes that this increase should be viewed cautiously as construction activity is often slower in December. When compared to the corresponding month in 2014, the number of construction products fell 8.1%.
The value of office construction projects was up 26% y/y in January 2015, and accounted for 74% of the total value of all contracts awarded within the commercial and retail sector during the month. Overall, the value of commercial and retail contracts totalled £823 million, up 22.7% y/y.
The value of new contracts in the industrial construction sector also improved, rising from £362 million in January 2014 to more than £500 million in January 2015, based on a three-month rolling average. The value of contracts in the sector was 38% higher than in December 2014. The figures released by Barbour ABI indicate that the North West experienced the highest value of industrial activity in January, accounting for 36% of contracts awarded.
“In the three months to January the total value of contracts for industrial construction was £1.2 billion, almost 18% higher than the previous three months. Whilst a large portion of the value is from the two major North West contracts, it is nevertheless encouraging with the sector likely to expand as we move further into 2015,” explained Michael Dall, Lead Economist at Barbour ABI. “The total value of industrial projects reaching the advanced planning stage in 2014 was £6.4 billion, an increase of over 50% on 2013, indicating a bright future for the sector.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/23022015/barbour-abi-report-on-uk-construction-contract-value-january-2015-384/