Contract awards sink to nine-month low

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The worth of caller enactment awarded to contractors has deed its lowest level since summertime 2021, according to research.

Analysis by operation penetration specializer Barbour ABI showed that £5.8bn of contracts were handed retired by clients successful the assemblage successful April. This was 33 per cent little than successful March and represented the smallest full since August 2021.

Commercial and retail awards were the astir suppressed, falling by 75 per cent successful a azygous period to £300m successful April. The worth of acquisition operation contracts plummeted by 51 per cent to £200m.

Infrastructure and residential deals were besides down connected erstwhile figures, but determination was amended quality for firms moving successful the leisure sector, wherever caller agreements accrued by 177 per cent.

There were besides affirmative signs further backmost successful the operation pipeline, with the worth of schemes receiving readying support up by 20 per cent successful April.

However, this was mostly owed to 3 monolithic offshore upwind farms being fixed the greenish light, with infrastructure consents up by a whopping 264 per cent to £5.6bn. All different sectors saw a drop-off successful the fiscal worthy of schemes approved.

Looking adjacent further back, applications grew by 55 per cent successful April, with £12.3bn of imaginable projects being enactment successful beforehand of readying authorities past month.

The largest chunk of these was residential, astatine £4.8bn, followed by £3.7bn of infrastructure schemes and £2.2bn of concern proposals, according to Barbour ABI.

Fellow manufacture quality supplier Glenigan last period found that declaration awards dropped by 9 per cent successful the archetypal 4th of 2022. Its study said large contracts felt the brunt of the impact, which was mostly owed to “persistent worldly shortages and supply-chain disruption”.

Earlier this year, analysts and commercialized bodies warned that shortages and terms hikes resulting from Russia’s penetration of Ukraine could bring large UK projects to a standstill.