Construction industry returns 67% value in 12 months according to Barbour ABI’s Economic & Construction Market Review
According to a report published this week the value of construction projects in the UK has rocketed by 67.1 per cent in the last year the report published by economist Barbour ABI. New project contracts awarded in December 2013 totalled £6 billion, compared to £3.6 bn in December 2012 which is a vast improvement.
The main growth area is in the infrastructure sector which 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, that shows a serious recovery is under way.
The figures, taken from Barbour ABI’s Economic & Construction Market Review, 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.
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 National Infrastructure Plan, as published by the Government on December 4th 2013, updated the top 40 infrastructure projects in the pipeline for the UK, outlining a pathway for potential growth. An increase in new orders data recorded by Barbour ABI encourages me to suggest that the sector does have strong growth potential this year.”