The UK construction sector saw mixed performance in June 2024, with varying trends across different categories.
- Major civil engineering projects experienced a decrease in contract awards and planning approvals compared to previous metrics.
- Despite a decline in some areas, overall project starts showed growth from the previous year.
- Rail and energy projects saw significant increases, while road projects declined sharply.
- Regional variations were notable, particularly in the East of England and Yorkshire and the Humber.
The overall construction landscape in the UK for June 2024 presented a varied picture. Civil engineering project starts, valued at £10.368 billion, decreased by 10% from the preceding quarter but were 168% higher year-on-year. This illustrates a significant recovery compared to the previous year’s figures, although short-term challenges remain.
There was a marked decline in major project awards, totalling £8.563 billion, which saw an 11% decrease from the previous quarter while still recording a remarkable 279% increase compared to the previous year. Meanwhile, underlying project starts, those below £100 million, fell by 11% from the preceding quarter but rose by 12% year-on-year, reaching a total of £1.805 billion.
Civil engineering contract awards suffered a substantial drop, amounting to £1.979 billion, marking a 76% decline from the preceding three months and a 64% decrease year-on-year. Similarly, major projects faced a sharp decline, with contract awards totalling only £995 million, reflecting an 85% decrease compared to the prior quarter and a 73% fall year-on-year.
The approval phase was equally challenging, with civil engineering detailed planning approvals reaching £3.804 billion. This represented a 55% drop from the previous quarter and a 48% decrease from the previous year. Major project approvals fell significantly, while underlying approvals increased modestly, suggesting nuanced sector dynamics.
Significant growth was observed in rail projects, which totalled £3.947 billion and accounted for 38% of all civil engineering project starts during this period. This represented an astonishing increase of more than 20 times compared to the previous year. Energy projects similarly experienced dramatic growth, totalling £2.488 billion and increasing by 448% year-on-year. Conversely, road projects decreased by 41%, underlining the sector’s volatility.
Regional data highlights that the East of England was the most active region, with project starts of £3.698 billion, an eightfold increase from last year, and accounting for 36% of national starts. Yorkshire and the Humber also experienced substantial growth, with starts increasing by over 40 times from the previous year to total £2.029 billion. Meanwhile, Scotland saw a more modest growth rate of 20%, reaching £593 million.
Overall, the UK construction sector in June 2024 exhibited both challenges and robust growth in specific areas, reflecting a complex economic landscape.
