The UK construction sector experienced notable shifts in June 2024, marked by contrasting trends in contract awards and planning approvals, particularly within the education sector.
- Main contract awards fell compared to both the previous quarter and the same period last year.
- Detailed planning approvals witnessed an increase over the preceding three months as well as from the previous year.
- The monetary value of education work commencing on site totalled £1.391 billion, showing an 11% decrease from the previous quarter.
- The industry faces challenges as it navigates the balance between declining awards and growing approvals in education construction.
In June 2024, the UK construction industry saw a decline in main contract awards, which dropped when compared to the last quarter and the previous year. This trend highlights the ongoing challenges facing the sector, particularly in securing new contracts that propel construction activities forward. The education sector, a significant component of the industry, was no exception to this downturn.
Conversely, detailed planning approvals rose during the same period. This upward trend in planning suggests a positive future outlook, with more projects potentially moving towards the construction phase in subsequent months. The increase in planning approvals not only indicates growing confidence among stakeholders but also sets a foundation for future growth.
Despite these positive planning activities, education construction work that began on site in June amounted to £1.391 billion, reflecting an 11% decrease from the preceding quarter. This decline illustrates the complex dynamics at play, where approvals do not immediately translate into on-ground activity. The reduced volume of on-site starts underscores the lag between planning and execution prevalent in the sector.
The contrasting trends in the sector underscore a broader challenge: balancing declining contract awards with increasing planning approvals. Companies within the construction industry must navigate these waters carefully, optimising resources to align with the current planning environment while managing reduced contract inflow.
The UK construction industry faces a challenging landscape in 2024 with declines in contract awards but an encouraging rise in planning approvals.
