A drop in the value of housebuilding contracts has contributed to a decrease in the value of construction contracts, says industry analysts Barbour ABI.
The value of new construction contracts in April reached £4.9 billion, a decrease of 6.8% compared to March. The decline coincides with a housebuilding slump that saw a drop of 15.3% compared to the previous month and a wavering infrastructure sector that has performed poorly so far in 2018.
The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI highlights levels of construction contract values awarded across Great Britain. The top project for the month was the ‘M1 Junction 16-13 Smart Motorway upgrade’ valued at £349 million, almost four times the value of the next biggest project.
Commenting on the figures, Michael Dall, Lead Economist at Barbour ABI, said: “April is a reminder for the industry that
when both infrastructure and in particular housebuilding falter, construction figures will by far and large decrease. Other
sectors had more of a successful month, such as medical and health construction, however due to the scale and size of
infrastructure and housing construction, it’s an overwhelming task for other segments of the industry to make up the
Regionally, London was the region with the largest share of contract awards value in April with 20.3% of the total, with three of the largest top ten projects across April. The capital was then followed by the East of England with 16% and the South East with 11.3%.