Housing heads up flagging 
construction figures
February 2018

Housing – and specifically one massive planned development – proved to be the biggest highlight in a flagging construction sector last month where the total value of contracts awarded at £5.4billion was 10.6% lower year on year, according to the latest figures from industry analyst Barbour ABI.

Housing accounted for contract values of £1.9billion while the largest project in January was the £800 million Spire London Hertsmere House development at West India Quay in London more than four times larger than the next biggest development.

Across the industry, education and hotel, leisure & sport sectors both saw monthly decreases in value in January, which could be seen as particularly concerning due to December being traditionally a quiet month. The remaining sectors of residential housing, infrastructure, commercial & retail, industrial and medical & health all saw increases on the previous month but overall below the levels of January 2017. 

Michael Dall, Lead Economist at Barbour ABI, said: “The recent collapse of Carillion has not done much for confidence in the sector, which is already facing a number of headwinds. Mainly due to a lack of major projects, construction has been held back in January. Nevertheless, encouraging figures from the residential housing and infrastructure sector is pleasing, but other sectors now need to help pick up the slack, such as hotel, leisure & sport which produced its lowest figures in January since October 2015.” 

www.barbour-abi.com