UK construction sector growth shows signs of cooling

While 2014 saw an increase, with the sector expanding by 2.8% on the previous year, when compared to the 25.2% rise in 2013, it is clear that the pace of growth has slowed.

The report from Barbour ABI, which is a chosen provider of construction data to the Office for National Statistics (ONS) and the government, cites the slowdown in growth in the residential sector as one of the major reasons for this, which after a rapid rise in 2013, has tailed off.

Michael Dall, lead economist for Barbour ABI, explains: "Comparing contract values in 2014 against 2013, there is an increase of 2.8%. While this is still an improvement, when you contrast this percentage change against 2013 versus 2012 where there was a 25.2% increase, and 2012 versus 2011 where there was a 29.1% rise, it's clear that the rate of growth is much more moderate."

Figures show London's continued prominence, with the capital accounting for 24% of the total value of UK construction contracts in 2014. This is closely followed by the South East at 12% and Scotland at 11%.

The total value of new UK construction contracts awarded in 2014 was £64.8bn - an increase of 3.7% compared to 2013 while the number of construction contracts awarded in 2014 was 12,440, a 10.4% increase on 2013.