Main contract awards fell against the previous year and the previous quarter. More positively, project starts grew on the preceding three months and detailed planning approvals increased on a year ago.

Infrastructure overview

Totalling £3.029bn, civil engineering work starting on site during the three months to February grew 7 per cent against the preceding three months but faced a 51 per cent decline against the previous year. Major projects (£100m or more), totalling £1.681bn, grew 31 per cent against the preceding three months to stand 63 per cent lower than last year. Underlying project-starts (less than £100m in value) increased 19 per cent against the preceding three months on a seasonally adjusted (SA) basis but were 21 per cent down compared with last year, totalling £1.347bn.

Civil engineering main contract awards, adding up to £3.582bn, experienced a 20 per cent decrease against the preceding three months to stand 41 per cent down on the previous year. Underlying contract awards experienced a weak performance, decreasing 19 per cent against the preceding three months (SA) to stand 42 per cent down on 2022 levels. Major projects totalled £2.296bn, a 22 per cent decrease on the preceding three months and a 41 per cent decrease on the previous year.

Totalling £5.602bn, civil engineering detailed planning approvals fell 60 per cent compared with the previous quarter but stood 27 per cent up on a year ago. Major project approvals, at £4.492bn, decreased 64 per cent against the preceding three months but jumped 62 per cent on the previous year. Underlying approvals declined 21 per cent (SA) against the previous three months and were 32 per cent lower than a year ago, totalling £1.11bn.

Types of projects started

At £1.246bn, road projects accounted for the greatest share (41 per cent) of civil engineering starts during the three months to February having grown 28 per cent on the previous year. Rail projects were also more than 128 per cent higher than last year, totalling £854m, accounting for a 28 per cent share of civil engineering starts.

At £78m, airports grew more than tenfold on a year ago, accounting for a 3 per cent share. Energy project-starts, on the other hand, slipped back 87 per cent against the previous year to total £508m. The segment accounted for a 17 per cent share of starts. Harbours/Ports accounted for 4 per cent, totalling £118m, which is 44 per cent lower than a year ago. Accounting for less than a 1 per cent share, water industry starts fell 96 per cent to total £10m. Waste projects also accounted for an insignificant share, at £5m, having decreased 83 per cent on a year ago.

Regional

The East of England accounted for 25 per cent of starts during the period, the highest of any area. The value of projects commencing in the region fell 79 per cent against the previous year to total £746m. Further decline was prevented by the £679m A428 Black Cat to Caxton Gibbet dual carriageway in Cambridge.

In contrast, accounting for 23 per cent of starts, the West Midlands jumped 559 per cent to total £706m. Scotland was another region to experience growth during the period. Accounting for 16 per cent of the sector, the value of project-starts in the region increased 4 per cent to total £496m. The North East accounted for 7 per cent, having grown 96 per cent to total £201m. Totalling £177m, the value of projects commencing in London more than doubled to account for 6 per cent of the sector.

The East of England, at £3.011bn, was the most active region for civil engineering planning approvals, accounting for 54 per cent of the sector. The value grew nearly seven times against the previous year and was boosted by the £1.268bn A12 Chelmsford to A120 junction improvement works in Essex. Yorkshire & the Humber also grew 109 per cent against the previous year to total £853m, a 15 per cent share of the sector.

Accounting for 8 per cent, Scotland increased 66 per cent to total £457 m. At £302m, the East Midlands also experienced a strong period, having increased almost six times against last year to account for 5 per cent of consents. In contrast, accounting for 9 per cent of consents, the South East fell 69 per cent on a year ago to total £485m.