Spearheaded by strong performances from the housing and hotel, leisure & sport sectors, overall contract value for the construction industry in February reached £6.4 billion based on a three month rolling average, a 15.4 per cent increase on the same month last year.
According to industry analysts Barbour ABI’s Economic & Construction Market Review, 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 on the month, a 105.3% increase compared to February 2016.
Across the other sectors within construction, Infrastructure accounted for £1.48 billion worth of construction contracts on the month, a 20.8 per cent increase on January. Commercial & retail projects also increased month on month by 17.5 per cent – the highest since September 2016, although values in the sector remain lower than previously when viewed over the longer term.
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 house building.”
“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.”