Housing supports strong construction figures
March 2017

Housing contracts worth £2.7billion as well as strong performances from the hotel, and leisure & sport sectors helped contract value for the construction industry in February to reach £6.4 billion – 15.4 per cent up on last year.

According to the latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, contracts for housing projects reached £2.7 billion in February, the same figure as January 2017, which are the best performing months for residential building since the economic downturn. Coinciding with the strong housing figures, the hotel, leisure & sport sector construction contracts reached £736 million (see figure 1.1) on the month, a substantial 105.3 per cent increase compared to February 2016.

Commercial & retail projects also increased month on month by 17.5 per cent – the highest since September 2016.
Michael Dall, Lead Economist at Barbour ABI, said: “After recent slumps in the infrastructure and commercial & retail sectors, it was encouraging to see both bounce back and produce encouraging figures in February, alleviating some of the pressure away from housebuilding.”

“With the hotel, leisure & sport sector recording its highest construction contract value in years, it will give the sector a well needed confidence boost, thanks greatly to a £400 million holiday resort, another major project given the go-ahead in February, a trend that made last month a positive one for construction.”

www.barbour-abi.com