The total contract value is still 29% behind November’s figure of £7.9bn, signalling the industry’s struggles in the early part of 2016. One positive trend was the continued success of construction projects in renewable energy.
The East Anglia One off-shore wind project was greenlighted last month, giving the sector a £1.8bn boost. That deal saw the East of England topple London to become the sector’s most profitable region for the month.
Michael Dall, lead economist, ABI Barbour, put the wider construction industry’s subdued performance down to the weaker performance of residential projects.
“It’s clear that overall construction performance hinges heavily on the residential sector, in particular private housing,” he said.
“Even with residential increasing its total contract value compared to January, it is still well below the figures of the fourth quarter in 2015. However, steady improvement from the infrastructure and commercial & retail sectors could significantly help remove the reliance the industry has on housebuilding contracts,” he continued.
