Construction contract awards increased by 11% in February to £4.7bn, but this still remains below average
Underlying activity in the construction industry has increased, but no single project was valued over £200m.
Similarly to January, distribution centres make up two of the top four construction contract awards.
Sector analysis
The residential sector strengthened in February to £1.9bn with strong activity in the West Midlands.
Infrastructure also picked up, rising £78% to £900m following a disappointing January.
The largest infrastructure projects are the National Grid LNG terminal expansion in Kent and the M25 Junction 28 improvements in Essex.
The industrial sector, led by warehousing, continued as the hottest sector, with two of the top four projects being distribution centres: a distribution hub in Wakefield worth £186m and a Lidl distribution centre in Bedfordshire with a value of £100m.
‘Planning approvals look fragile’
Tom Hall, chief economist at Barbour ABI and AMA Research, said: “There was not a huge amount to see in February as planning activity was maintained; no pre-budget optimism to be seen.
“Contract awards strengthened slightly while planning applications and approvals weakened. Approvals particularly are looking fragile.
“Elsewhere the significant activity in warehousing and distribution continued, and infrastructure contract awards returned to previous levels after a weak January.”
