The construction sector in the North East of the UK is experiencing mixed fortunes.
- Project starts in the region were disappointing compared to previous months and last year.
- Meanwhile, there was an increase in main contract awards, signalling potential future growth.
- Detailed planning approvals also rose, providing hope for upcoming projects.
- Overall, the market remains unpredictable with varying performances across different sectors.
The construction industry in the North East faced significant challenges in July 2024, with project starts showing a marked decline. This downturn in new projects starkly contrasts with both the preceding quarter and the same period in the previous year. Industry analysts are concerned about what this decrease might foretell for the region’s economic outlook.
Conversely, there is a silver lining in the form of increased main contract awards. This rise indicates a positive sentiment among contractors, suggesting that after a period of stagnation, there could be an uptick in activity as these contracts move towards execution.
In addition to contract awards, detailed planning approvals also witnessed growth compared to the previous three months. This uptick reflects a proactive stance towards future developments and hints at a recovery in the planning stages of new projects, despite setbacks in actual project commencements.
Despite these fluctuations and uncertainties, the value of construction work starting on-site in the North East amounted to £658 million, which, although a considerable sum, highlights the nuances and disparities within the industry’s current state.
The North East construction market remains volatile, with promising future indicators amid present challenges.
