Residential sector continues to outperform the rest of the industry, with private housing accounting for most contract wins
The value of construction contracts in November dropped to its lowest point since the aftermath of the Brexit vote as the value of deals fell by 30% compared to a year ago.
According to the December edition of the Economic & Construction Market Review from industry analysts Barbour ABI, total construction contract value in November hit £5.5bn, reverting back to the same total totted up in August.
Major sectors such as residential, commercial and retail and infrastructure struggled to gain momentum.
But despite a lacklustre November, the residential sector still led all sectors with £2.1bn worth of construction contracts, with 79% of the value coming from private housing investment.
It was London and the North-east that led all regions, each with 15% of the contract value total.
The North-east’s rise in November was greatly helped with the commissioning of the Tees renewable energy plant in Cleveland, worth £650m.
Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “When comparing October and November to last year’s figures, the industry is vastly behind where it was at that time, with anxiety over the Brexit and future political decisions the most likely probable cause for the drop off.
“The industry is still relying heavily on the residential sector to bring in a large proportion of contract value, putting too much reliance on the sector to perform month after month.”