The total value of contract awards in January 2021 was £4.3billion, a decrease of 12% on December 2020 and also 10% lower than the monthly average in 2020 which was £4.8 billion.
The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain.
Sector analysis shows that the total value of infrastructure projects reached £500 million in January, which is 57% lower than December 2020.
The total value of contract awards for industrial were also low compared to recent figures, in January the total value was £600 million which is a decline of 24% compared to December 2020. However, there was significant activity in the warehousing sub-sector. Two of the top four overall contract awards in January were warehouse projects –including the £125million Next Warehouse in South Elmsall Yorkshire, and the £100million Uniserve Distribution Centre in Suffolk.
Planning in January was also strong in the industrial sector with a total of £700 million new approvals. The hotel leisure and sport sector saw exceptional activity with £1.8 billion of approvals – major projects included the £1.3 billion Olympia Redevelopment in London, a £250 million Gateshead Quays Redevelopment in the North East, and the £350 million Manchester Arena project in the North West.
Tom Hall, Chief Economist at Barbour ABI and AMA Research said: “The planning environment maintained activity in January, continuing its recent trajectory at lower than average levels. Those hoping for a bounce in activity as we leave the EU will be disappointed; clearly the Covid-19 pandemic remains the main factor suppressing activity.
“Meanwhile it is positive to see some life in the Hotel and Leisure sector with record planning approvals over the last quarter.”
