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UK construction industry achieves significant growth

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World Cement,

UK construction projects recorded a 67.1% growth, in value terms, in 2013, with contracts in December totaling £6 billion. This is a significant increase on December 2012 when new project contracts amounted to £3.6 billion. In particular, the infrastructure sector performed remarkably well, achieving a 101.6% y/y growth to £2.2 billion according to figures from Barbour ABI’s Economic & Construction Market Review.

The UK government’s Help to Buy scheme has also proved lucrative, driving contract value growth of 88.2% y/y in this sector. Michael Dall, lead economist at Barbour ABI, suggested that the sustained increase in residential construction can be largely attributed to the scheme, adding: “there are concerns that demand created by such schemes will surpass the rate of house building. This is a topic that will be the source of major debate over the next 12 months in the lead up to the 2015 elections.”

“The National Infrastructure Plan, as published by the Government on December 4th 2013, updated the top 40 infrastructure projects in the pipeline for the UK, outlining a pathway for potential growth. An increase in new orders data recorded by Barbour ABI encourages me to suggest that the sector does have strong growth potential this year,” said Mr Dall.

The Economic & Construction Market Review is a monthly report designed to give valuable, current insight into UK construction industry performance. It is available to download here.

Adapted from press release by

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