Construction dips to five-year low
June 2018

The value of new construction contracts in May reached £4.5 billion, a decrease of almost ten per cent compared to April and the lowest amount for over five years, with residential and infrastructure bearing the brunt of the decline, according to the latest figures from industry analyst Barbour ABI.

Industrial and education were the only sectors in May that produced positive growth in contract values, increasing by 2.2 and 4.6 per cent respectively. The biggest fall came from commercial and retail construction, which, fell by almost 30 per cent despite having the largest project of the month.

Michael Dall, Lead Economist at Barbour ABI, said: “Across May we continued to see the decline in housing and infrastructure construction, with the value of new work in construction reaching its lowest point since January 2013. 

Whilst it’s encouraging that the industrial and education sectors saw contract values increase, the deficit was too large to make up the shortfall, with both housing and infrastructure continuing in their slump.”