The number of planning applications for new construction projects in key sectors continued to fall in February, says Barbour ABI.

Infrastructure was down 60%, residential down 24% and commercial planning applications were down 54%, as uncertainty continued to plague the market.

Analysis by Barbour ABI found the only bright spot to be industrial applications, which saw a huge increase to £3.7bn, mainly due to a £2.5bn battery manufacturing facility at Coventry Airport.

Barbour ABI head of business and client analytics, Ed Griffiths, said: “As expected, the 2025 Spring Statement focused on tackling increased skill shortages with a £625m investment, housing targets with a £2bn investment and an intention of increased capital spending, with £13bn to be spent on infrastructure projects.

“However, planning application numbers show that construction industry confidence is not where the government needs it to be right now.

“The economic outlook is challenging with the UK growth forecast halving to 1% and concerns around inflation. Additionally, tariffs from the US could now lead to price volatility, causing more risk to contractors.”

A 21% fall in contract award value dropped March to below the 2024 average and almost £1bn less than this month last year.

This was largely due to infrastructure falling 59% after a strong February, along with a big drop in health and medical related contract awards. Infrastructure approvals were also down 23%, stalling previous progress made by the government in unlocking projects in areas such as green energy.

Regionally, the West Midlands bounced back after a poor February with large student accommodation projects along with infrastructure bringing in a 30MW solar farm and roadworks on the A4123.

But the South-west had little to offer, with awards dipping 73% to £280m with a £39m MOD training facility being the largest award in the region.

Click here to read Barbour ABI’s Construction Industry Monthly Snapshot.