Hudson Contract delivers the most accurate indications of pay trends across the construction industry, using payroll data for over 2,200 construction companies and over 125,000 freelance builders to publish the average pay for the full spectrum of 17 different trades across five regions.

Yet again, the pay trends tell a story of mixed fortunes – and in a reversal of last month, four regions are down with only the South-East reporting a small upward trend of 1.39%, in contrast with the North-West, where average earnings have tumbled by 3.69%.

Looking at individual trades across all five Hudson Contract regions, a mixed picture also emerges:

• BRICKLAYING: Up 22% in the South-West – but down 19% in the Midlands
• SHOPFITTING: Down 19% in the North-East – yet up 12% in the North-West
• ELECTRICIANS: Up 16% in the South-East – but down 14% in the North-West

In terms of the bigger picture, what does it all mean?

Ten months of contraction – but better times ahead?

Comments Hudson Contract Managing Director David Jackson: “To a certain extent, these decreased earnings are a reflection of the recent unseasonal wintry weather in some of the country. Although having said that, other new construction statistics also sound a loud note of caution.

“It’s positive news that industry insolvencies are down 5%, as reported by accountancy firms PwC, on the last quarter. But on the other hand, the latest monthly survey from Markit/CIPS UK shows output is continuing to decline and new business has fallen for the tenth consecutive month.

“The real issue we are now seeing is that as projects come to an end, there simply isn't sufficient new work out there to replace them. And whilst the budget didn't grant our wish of a reduction in VAT on renovations, the support given to infrastructure and housebuilding is a positive boost to the industry, although as we all know, it will take time for the practical impact to filter through.”

NORTH EAST