Scotland’s construction sector experienced a notable decline in May 2024, impacting various project phases.
- On-site project starts dropped by 29% in three months leading to May, significantly lower than a year prior.
- Main contract awards witnessed a dramatic 52% decrease compared to the previous three months.
- Detailed planning approvals showed a modest decline, with notable shifts in sector performances.
- The private housing sector emerged as the most active, despite a substantial drop in project start values.
In the three months to May 2024, Scotland’s construction industry saw a substantial 29% decrease in on-site project starts, with figures remaining 48% lower compared to the same period last year. Project starts valued under £100m decreased by 35% when adjusted seasonally, also showing a 33% decline year-over-year. Major projects valued over £100m totalled £200m, representing a 23% downturn from the preceding quarter and a staggering 76% drop from the previous year.
Main contract awards in Scotland fared even worse, decreasing by 52% over the prior three months and standing 30% lower than a year ago. Underlying contract awards were reported at £1.25bn, marking a 24% decrease against the previous quarter and a 36% drop compared to last year. The total value of major contract awards was £638m, showing a 71% decrease over three months and 15% compared to the last year.
Detailed planning approvals in Scotland reached £2.53bn, with a 7% decrease against the last quarter and a 5% decline compared to last year. Major planning approvals decreased by 7% over the preceding quarter and were 11% lower than the previous year, totalling £654m. Similarly, underlying approvals dropped by 12% seasonally adjusted, with a 3% decrease from the previous year, totalling £1.88bn.
The private housing sector remained the most active for project starts during the assessed period, accounting for 33% of the total value. Despite this, the sector saw a 49% decline compared to the prior year, with project values totalling £411m. Industrial sector projects suffered the most considerable decrease of 91%, amounting to £10m, while the hotel and leisure sector experienced a 20% increase to £91m, accounting for 7% of the total.
In terms of planning approvals, private housing led with a 36% share, though approvals decreased by 33% year-over-year, valuing £911m. Social housing approvals, conversely, improved by 14%, amounting to £325m, representing 13% of the total approval value. Utilities experienced significant growth, increasing 456% from the previous year to contribute £682m, making up 27% of the total, the second highest in the region.
Overall, Scotland’s construction activity faced significant challenges in May 2024, with declines across project starts, contract awards, and planning approvals.
