Construction contract awards drop by 12% in January


The value of construction contract awards decreased by 12% in January to £4.3bn, 10% lower than the monthly average in 2020

When compared to December, construction contract awards in January dropped by 12%.

Sector breakdown

Sector analysis reveals that the total value of infrastructure projects reached £500m in January, which is 57% lower than December 2020.

The total value of construction contract awards for industrial was also low compared to recent figures, in January the total value was £600m which is a decline of 24% compared to December 2020.

However, there was significant activity in the warehousing sub-sector. Two of the top four overall contract awards in January were warehouse projects – including the £125m Next Warehouse in South Elmsall Yorkshire, and the £100m Uniserve Distribution Centre in Suffolk.


Planning in January was also strong in the industrial sector with a total of £700m new approvals.

The hotel leisure and sport sector saw exceptional activity with £1.8bn of approvals – major projects included the £1.3bn Olympia redevelopment in London, a £250m Gateshead Quays redevelopment in the North East, and the £350m Manchester Arena project in the North West.

‘Covid-19 remains the main factor suppressing activity’

Commenting on the figures, Tom Hall, chief economist at Barbour ABI and AMA Research, said: “The planning environment maintained activity in January, continuing its recent trajectory at lower than average levels.

“Those hoping for a bounce in activity as we leave the EU will be disappointed; clearly the Covid-19 pandemic remains the main factor suppressing activity.

“Meanwhile it is positive to see some life in the hotel and leisure sector with record planning approvals over the last quarter.”

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain.

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