Economic Context Major announcements and developments in the UK economy this month. The Construction Sector The main economic headlines in the construction industry this month. Sectors in Detail A closer look at changes in the major sectors within the industry this month. SKIP TO THIS SECTION SKIP TO THIS SECTION MARCH 2017 SUBSCRIBERS ONLY Register for your 10 FREE LEADS today 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 To navigate just click on the tabs, buttons or page numbers and they will take you directly to your chosen section. MARCH 2017 Residential Medical & Health Economic Context About Us The Construction Sector Hotel, Leisure & Sport Industrial Education Commercial & Retail Infrastructure Hinderton Point, Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ T: 0151 353 3500 E: [email protected]@BarbourABI
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MARCH 2017 - Barbour ABI · E: [email protected] W: @BarbourABI Provider of the Government's Construction and Infrastructure Pipeline Chosen provider of Construction New Orders
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Economic ContextMajor announcements and developments in the UK economy this month.
The Construction SectorThe main economic headlines in the construction industry this month.
Sectors in DetailA closer look at changes in the major sectors within the industry this month.
SKIP TO THIS SECTION SKIP TO THIS SECTION SKIP TO THIS SECTION
CONSTRUCTION CONTRACT VALUES INCREASE IN FEBRUARYThe value of construction contracts increased in February but the number of projects saw a signifi cant decline.
The latest fi gures from the ONS show that in January 2017,
construction output fell by 0.4% compared with December 2016.
However, output grew on a 3 month on 3 month basis by 1.8% (see
Fig. 2.1). Repair and maintenance fell 1.3% month-on-month in
January, with decreases in public housing and non-housing repair and
maintenance. All new work showed signs of fl attening out with growth
of 0.1% in January 2017, but continued to grow in the latest 3 months
compared with the previous 3 months at a rate of 2.1%. Despite
falling month-on-year for the 13th consecutive month, infrastructure
grew month-on-month for the third time in a row, increasing 3.5%
in January 2017. Overall annual construction output growth has
increased for 2016, to 2.4% from 1.5%, due to upward revisions for all
4 quarters, including a revision of 0.8% in Quarter 4 (Oct to Dec) 2016,
from 0.2% to 1%. New orders fell by 2.8% in Quarter 4 of 2016, driven
mainly by falls in private industrial and private commercial work.
Despite new orders falling in Quarter 4 of 2016, the annual volume of
new orders is now at its highest level since 2008.
The CPA/Barbour ABI Index which measures the level of contracts
awarded using January 2010 as its base month recorded a reading
of 141 for February, rising by 4% when compared to January (see
Fig. 2.2). After falls in the second half of 2016, contract awards have
risen in the fi rst two months of 2017, with private housing, public health,
offi ces and leisure all increasing in February. Interestingly however,
London prime housing market new starts and prices are declining, but
if you exclude this small niche, they are both rising. UK house prices
rose 4.5% in the year to February according to Nationwide.
Other news this month in the construction sector:
❚ The Markit/CIPS PMI reported a fi gure of 52.5 for UK
construction in February, up from 52.2 in January, indicating
that construction activity expanded.
❚ In the budget the Chancellor announced £90m for the North
and £20m for the Midlands to help pinch points on the national
road network. He also announced that the Government will be
launching a £690m competition to tackle urban congestion.
❚ According to the latest CPA State of Trade Survey half of
construction product manufacturing fi rms reported that sales
rose during the fourth quarter of 2016, the fi fteenth quarter of
growth. However heavy and light side manufacturers have very
different forecasts for 2017, with 18% of heavy side product
manufacturers and 57% of light side manufacturers reporting
that they anticipate sales to rise over the coming year.
Construction SectorAccording to Barbour ABI data on all contract activity, February
witnessed an increase in construction activity levels with the value
of new contracts awarded at £6.4 billion, based on a three month
rolling average (see Fig. 2.4). This is a 6.8% increase from January
and a 15.4% increase on the value recorded in February 2016.
0
100
200
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400
500
600
Cont
ract
s Awa
rded
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x (Ja
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All New Build Private HousingCommercial Offices
Commercial RetailIndustrial Factories
A M J J A S O N D J F M A M J J A S O N D J F
2015 2016 2017
Fig. 2.2 Contracts Awarded Source: CPA/Barbour ABI
% change
Quarter 3 2016 –Quarter 4 2016
January 2016 –January 2017
Total All Work 1.8 2.0
All New Work 2.1 3.4
Public Housing 3.2 -1.2
Private Housing 3.0 7.4
Infrastructure 4.0 -0.7
Public (ex Infrastructure) 3.5 5.4
Private Industrial (ex Infra.) -7.3 -14.2
Private Commercial (ex Infra.) 0.5 5.2
Repairs & Maintenance 1.2 -0.7
Public Housing 1.4 -13.1
Private Housing 5.4 9.7
Non-Housing -2.0 -4.6
Fig. 2.1 Construction Activity by Sector (chained volume measure) Source: ONS
Take a look at these construction projects in focus this month.
Click on one of the projects below to skip to that page.
PROJECTS IN FOCUS THIS MONTH
COMMERCIAL & RETAIL100 Liverpool Street – Office Extension/Refurbishment£120,000,000
A snippet of this month's regional activityTake a look at what regions have had the most activity.
Residential
Infrastructure
Commercial & Retail
Hotel, Leisure & Sport
Industrial
Medical & Health
Education
HOTEL, LEISURE & SPORTTynecastle Stadium – Main Stand & Nursery£12,000,000
EDUCATIONBarry Building Redevelopment – Royal College of Surgeons of England£25,000,000
INDUSTRIALPrologis Park, Fradley – DC1 Warehouse and Distribution Unit£50,000,000
MEDICAL & HEALTHDurham Diagnostics and Treatment Centre£4,500,000
INFRASTRUCTUREWaverly Modifications – Platform 5, 6 and 12£23,000,000
RESIDENTIAL225 Marsh Wall Redevelopment – The Madison£150,000,000
THE CONSTRUCTION SECTOR CONSTRUCTION CONTRACT VALUES INCREASE IN FEBRUARY
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