{"id":20563,"date":"2023-08-10T03:00:57","date_gmt":"2023-08-10T10:00:57","guid":{"rendered":"https:\/\/essential.construction\/news\/contract-awards-to-suppliers-hit-year-high-in-july\/"},"modified":"2023-08-10T03:00:59","modified_gmt":"2023-08-10T10:00:59","slug":"contract-awards-to-suppliers-hit-year-high-in-july","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/contract-awards-to-suppliers-hit-year-high-in-july\/","title":{"rendered":"Contract awards to suppliers hit year-high in July"},"content":{"rendered":"

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A 184% monthly increase in the industrial sectors, including manufacturing, warehouses, and military projects was the driving force behind the uptick, alongside a positive month for infrastructure.<\/p>\n

Infrastructure contributed \u00a32bn in contract awards, mainly from renewable power generation, and the commercial sector also had a good month with \u00a31.1bn awarded in large office projects.<\/p>\n

Infrastructure also sawan exceptional month for planning approvals, posting \u00a35.1bn, thanks to the \u00a32.6bn Hornsea Project 4 and other renewable generation projects, contributing to \u00a313.bn of approvals in total \u2013 up from \u00a38.4bn in June<\/p>\n

The industrial sector saw its highest planning approval values in over a year, and the hotel and leisure sector saw the highest since January 2021 thanks to the Gateshead Quay Arena redevelopment.<\/p>\n

Residential construction continued to struggle as contract awards remained low at \u00a31.8bn \u2013 15% down compared to 2022.<\/p>\n

Barbour ABI Chief Economist Tom Hall said: \u201cOur latest analysis shows some respite after a difficult period for the construction industry.<\/p>\n

\u201cHowever, given the uncertainties in the wider economy, these improved levels are unlikely to continue over the coming months. Meanwhile, the residential sector, hammered by high-interest rates and inflation, continues to struggle to keep its head above water.<\/p>\n

\u201cPlanning applications, which are a strong indicator of future output, saw a very weak end result of \u00a37.5bn per month in Q2, the lowest quarterly result since the first Covid-19 lockdown.<\/p>\n

\u201cOverall planning application activity was 23% lower in Q2 compared to last year. We also saw a 45% decrease month on month in infrastructure planning applications in last month\u2019s figures, so this sector is unlikely to prop up the industry for much longer.\u201d<\/p>\n

For more construction market data click here<\/a>.<\/p>\n<\/p><\/div>\n