Its analysis of contracts let during the month puts the total value at £6.0bn, compared to £3.6bn for December 2012.
Infrastructure projects accounted for 36% of the total in December 2013. This sector proved to be an area of significant growth last month, with the total value of projects awarded reaching £2.2b, up 11% from November 2013 and more than double the December 2012 total.
The data is contained in Barbour ABI’s Economic & Construction Market Review, which also highlight sustained growth in the residential construction sector. The total contract value for December in this sector grew by 88% year-on-year.
Michael Dall, lead economist at Barbour ABI, said: “Residential construction remained strong throughout the latter half of 2013 and has truly spurred on the growth of the industry. In the most part, the increase in residential activity can be attributed to the Government’s Help to Buy scheme, but there are concerns that demand created by such schemes will surpass the rate of house building. This is a topic that will be the source of major debate over the next 12 months in the lead up to the 2015 elections.
“The performance of infrastructure as a sub-sector is also incredibly encouraging. The figures are a reflection of an exciting year of renewed optimism for the construction industry and, as a major contributor to figures for the industry as a whole, the sustained period of strong project values in this sector is good news and a key indicator for future growth.”
The report also identifies regional variations in overall construction performance. Last month Wales took the lead as the most prominent area, accounting for 19% of the UK total. This was largely attributable to a single £800m waste treatment project announced in Clwyd. London accounted for 18% of all contracts awarded, while Yorkshire & Humber and the Southeast accounted for 13% and 12% of the total respectively.
Economic & Construction Market Review is available to download at http://bit.ly/1eUKB9P
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