Main contract awards and detailed planning approvals fell against the previous year and the previous quarter. More positively, project starts grew on a year ago.
Infrastructure overview
Totalling £10.368bn, civil engineering work starting on site during the three months to June decreased by 10 per cent against the preceding three months but was 168 per cent up on the previous year. Major projects (worth £100m or more), totalling £8.563bn, fell 11 per cent against the preceding three months, to stand 279 per cent higher than last year. Underlying project starts (less than £100m in value) fell by 11 per cent against the preceding three months on a seasonally adjusted (SA) basis and were 12 per cent up compared with last year, totalling £1.805bn.
Civil engineering main contract awards, adding up to £1.979bn, experienced a 76 per cent decrease on the preceding three months, to stand 64 per cent down on the previous year. Underlying contract awards experienced a weak performance, decreasing 31 per cent against the preceding three months (SA), to stand 42 per cent down on the 2023 level. Major projects totalled £995m – an 85 per cent decrease on the preceding three months and a 73 per cent fall on the previous year.
Totalling £3.804bn, civil engineering detailed planning approvals fell by 55 per cent compared with the previous quarter, to stand 48 per cent down on a year ago. Major project approvals, at £2.285bn, decreased by 68 per cent against the preceding three months and by 61 per cent on the previous year. Underlying approvals climbed by 4 per cent (SA) against the previous three months and the level was 3 per cent higher than a year ago, totalling £1.519bn.
Types of project started
At £3.947bn, rail projects accounted for the greatest share (38 per cent) of civil engineering starts during the three months to June, having grown by more than 20 times on the previous year. At £2.488bn, energy projects jumped 448 per cent on a year ago, accounting for a 24 per cent share. Harbour/port projects were 9 per cent higher than last year, totalling £194m, accounting for a 2 per cent share of civil engineering starts. Waste projects totalled £102m, having jumped seven times on a year ago, accounting for 1 per cent. In contrast, accounting for a 12 per cent share, road project starts fell by 41 per cent, to total £1.241bn. Water industry schemes accounted for a 2 per cent share, totalling £162m, which was 3 per cent lower than a year ago. Airport projects accounted for an insignificant share, at £2m, having decreased by 97 per cent on a year ago.
Regional
The East of England accounted for 36 per cent of starts during the period – the highest of any area. The value of projects commencing in the region jumped by more than eight times on the previous year, to total £3.698bn. Accounting for 20 per cent of starts, Yorkshire and the Humber increased by more than 40 times, to total £2.029bn. The South East also experienced growth during the period. Accounting for 19 per cent of the sector, the value of starts in the region increased by 141 per cent, to total £1.899bn. Scotland grew by 20 per cent to total £593m – a 6 per cent share of civil engineering starts.
The East of England, at £1.627bn, was the most active region for civil engineering planning approvals, accounting for 43 per cent of the sector. The value fell by 63 per cent against the previous year. Further decline was prevented by the Sheringham and Dudgeon Extension projects, worth £1.479bn. The East Midlands decreased by 55 per cent against the previous year, to total £364m – a 9 per cent share of the sector. Accounting for 7 per cent, the South East decreased by 46 per cent, to total £274m. In contrast, accounting for 10 per cent of consents, Scotland increased by 29 per cent on a year ago, to total £399m. Accounting for the same share, approvals the North East totalled £392m. Consents in the region jumped by nearly 20 times, boosted by the £220m dualling of the A1 between Morpeth and Ellingham in Northumberland.