Construction contract awards jump to 7.3 billion in May as uncertainty continues
[edit] A jump in May but uncertainty continues
- Infrastructure contracts jump 86% even as applications tumble
- Etihad stadium provides much needed good news for the leisure industry
- Uncertainty remains the key word ahead of general election
Contract awards in construction were up 5% in May driven by a huge rebound in infrastructure projects and in hotels, leisure and sport according to the latest analysis from Barbour ABI. Infrastructure awards jumped 86% to £1.4bn after a dip in April whilst contracts awarded for the north stand extension of the Etihad Stadium were behind a 164% increase in the leisure industry.
But it wasn’t all good news with housing developments remaining stagnant whilst awards in the UK construction powerhouse of London fell by 44%. Residential approvals were also down 10% from last month, continuing a disappointing year.
Barbour ABI head of business and client analytics, Ed Griffiths said:
It has been another strong month for awards. Residential remains stagnant sitting just below the Q1 2024 average of £2.1bn but above the 2023 yearly average of £1.9bn.
The upcoming election may offer hope for the built environment, but any policy announcements will likely take a while until shovels are in the ground. A possible change in government could focus spending and confidence on a number of sectors, particularly housing and renewable energy.
Elsewhere, planning applications fell 16% from March to April with infrastructure down 62% - its worst performance since April last year.
However, Industrial related applications had a promising month with a 281% increase from March, driven by works at Stansted Airport in the East of England, almost reaching the highs of last December.
Education also performed well with a 74% increase, mostly driven by a large development of student accommodation at the University of Bristol.
“Looking across the industry a clear picture is difficult to discern as various sub sectors rise and fall dramatically from month to month.
This could be interpreted as a holding pattern ahead of the election or a signal that a great deal of uncertainty still remains in the UK economy. Many in the industry will no doubt be hoping things settle down in the second half of the year once the election results have been confirmed.
--Barbour ABI 11:54, 18 Jun 2024 (BST)
[edit] Related articles on Designing Buildings
Featured articles and news
BSRIA Briefing 2024: Sustainable Futures speakers
Redefining Retrofit for Net Zero Living 22 Nov.
Wall of support for post-Grenfell regulation of electricians
Call for a shake-up of the construction industry highlighted on radio.
Digital sustainability through future AEC tools
Bringing together industry and academia to meet challenges.
Skills gap for net zero highlighted to Minister for Industry
ECA convenes roundtable discussion at Portcullis House.
Evidencing Net Zero with the new UK buildings standard
Pilot version with detailed excel proforma out now!
Scottish Building Safety Levy, in consultation
From direct remediation and the RPDT, to the costs and alternatives.
Waves of warmer homes grants for the rental sector
Boosting energy efficiency standards for all rented homes.
A refocus of the National Planning Policy Framework
Key terms described in brief, as the consultation closes the evening of the 24th.
Fortified farmhouses of the unruly 16th-and 17th-century borders.
ECA shares advice for those who may be exposed to risks.
How to revolutionise UK housing with MMC
CIC and Supply Chain Sustainability School unveil a plan.
From the UKs largest manufacturer and supplier of lime.
From mud bricks to smart concrete
A brief history from 7000BC to a future on the moon.
Regulator of Social Housing publishes latest fire safety report
Covering remediation of 11 metre plus social housing sector buildings.
Apartment and Duplex Defects Remediation Bill 2024
Approved for priority drafting by Government of Ireland.
The long list with in the frame of key historical events.
Competence frameworks for sustainability in the built environment
Code of practice, core criteria consultation draft for comment.
New Floods Resilience Taskforce
With a wet met office autumn prediction.