Construction activity in the East of England showed varied performance in May 2024.
- Total project starts soared with a substantial increase from the previous year.
- Main contract awards and planning approvals saw significant declines.
- Infrastructure and social housing sectors experienced notable growth while private housing lagged.
- Utilities led planning approvals despite significant year-on-year decline.
The East of England’s construction sector exhibited contrasting trends in May 2024, showcasing notable achievements alongside areas of concern. The total value of project starts reached £4.7 billion, marking remarkable growth of 27 per cent compared to the previous three months and an impressive 89 per cent increase from the previous year. This substantial rise was primarily driven by major project starts valued at £100 million or more, which surged by 64 per cent against the preceding three months and a staggering 307 per cent year-on-year.
In stark contrast, main contract awards and planning approvals witnessed significant downturns. Main contract awards plummeted to £1.61 billion, a sharp 71 per cent decrease from the previous quarter and 47 per cent down compared to the previous year. This decline extended to major project approvals, which totalled only £220 million, marking a dramatic 94 per cent decrease against the preceding three months and 64 per cent down from the previous year.
The infrastructure sector emerged as the most dynamic, accounting for 77 per cent of project starts and witnessing an extraordinary 745 per cent year-on-year increase. Social housing projects also experienced growth, up by 68 per cent to account for four per cent of the total value. However, private housing starts contracted significantly, registering a 63 per cent decrease to £504 million, representing the second-largest share of project starts.
Planning approvals reflected a mixed performance across sectors. Utilities led planning approvals with a 38 per cent share despite a 61 per cent decline from the previous year, totalling £1.57 billion. Although private housing approvals followed closely with a 31 per cent share, they too saw a downward trend, dropping 29 per cent year-on-year. Conversely, offices experienced a significant boost, with approvals skyrocketing by 243 per cent to reach £350 million, securing an eight per cent share of total approvals.
The East of England’s construction landscape in May 2024 was characterised by sharp variances across different sectors and project types.
