The value of construction projects in the UK has rocketed by 67.1 per cent in the last year, according to a report published today. New project contracts awarded in December 2013 totalled £6 billion, compared to £3.6 bn in the same month in 2012.
These latest figures, taken from Barbour ABI’s Economic & Construction Market Review, also highlight sustained growth in the residential construction sector, which continues to be boosted by initiatives such as the Government’s Help to Buy scheme. The total contract value for December in this sector grew by 88.2 per cent year-on-year.
On the findings of the report, Michael Dall, lead economist at Barbour ABI, commented: “Residential construction remained strong throughout the latter half of 2013 and has truly spurred on the growth of the industry. In the most part, the increase in residential activity can be attributed to the Government’s Help to Buy scheme, but there are concerns that demand created by such schemes will surpass the rate of house building. This is a topic that will be the source of major debate over the next 12 months in the lead up to the 2015 elections.
“The performance of infrastructure as a sub-sector is also incredibly encouraging. The figures are a reflection of an exciting year of renewed optimism for the construction industry and, as a major contributor to figures for the industry as a whole, the sustained period of strong project values in this sector is good news and a key indicator for future growth.”
The infrastructure sector proved to be an area of significant growth last month, with the total value of projects awarded reaching £2.2 billion, a 10.6 per cent increase from November 2013 and a huge 101.6 per cent year-on-year growth.
The Economic & Construction Market Review is a monthly report designed to give valuable, current insight into UK construction industry performance. The Review is compiled from Barbour ABI’s records of construction data for every UK planning application, and key indicators, such as the Office for National Statistics’ Construction New Orders data.
The Economic and Construction Market Review will be published monthly and is available to download here.