The construction industry posted a second consecutive month of falling contract awards in November, according to the latest analysis by Barbour ABI.

Awards values were down 35% in November following a 36% fall in October.

This continues a trend set since the election with contract awards down 29% between Q3 and Q4.

The drop included a 36% drop in residential projects to £1.6bn.

While infrastructure awards increased in November, they still sat 64% down from the 2024 average and the month was the second worst since April 2023.

Notably, the North-west had a poor November for awards dipping 54% from October and 24% from the 2024 average.

Barbour ABI head of business and client analytics, Ed Griffiths, said: “It has been another disappointing month for contract awards.

“All regions except the East of England were uneventful in November. The significant dip in residential awards does little to inspire confidence in the government’s drive to get Britain building.

“Infrastructure saw a small increase, but it is still struggling.”

He said there was hope that the government’s ambitions to green light 150 major infrastructure projects will “finally light a fire under the sector”.

But there was better news with planning applications up in October across all sectors.

This was commensurate with a 26% overall increase in the value of applications against September at £8.3bn.

Barbour ABI said this suggests companies are still looking to fill out their pipelines in 2025 - as is usually the case at this time of year.

The North-east recovered to above its two-year average after a disappointing few months.

Much of this value comes from a £250m Data Centre application at Durham University - part of the data centre application rush that has been sweeping the UK in recent months.

Griffiths added: "There is more positivity in the pipeline coming from applications, but with approvals down 26% as well, it is yet to be seen how many of these will make it through the planning process.

"Hopefully, with the government’s recent and renewed push on local councils and planning reforms we will start to see more projects come through the pipeline.

"Industry watchers should also keep an eye on data centre projects. There are a large number of projects in planning phase, and with the government designating them critical infrastructure this could become a huge driver for activity in 2025."