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Construction contract values achieve year-on-year increase

Words: Laura Edgar
House-building / iStock: 911672188

Construction contract values totalled £6.5 billion in February 2020 – 19.9 per cent up on those for February 2019, according to analysis published by Barbour ABI.

The February 2020 figure, which is based on a three-month rolling average, is a 16.9 per cent increase on January this year.

In the three months ending February 2019, the value of construction contracts awarded was £16.6 billion – 10.6 per cent more than the previous three months.

In total, 1,003 construction contracts were awarded, indicates data from the industry analyst. 

In February, the residential sector accounted for 57 per cent of all contracts, while infrastructure accounted for 21.7 per cent.

After these two sectors came commercial and retail, with a 5.5 per cent share. The hotel, leisure and retail sector took a 5.2 per cent share. 

The West Midlands accounted for 9.9 per cent of awards and the South East had a 9.7 per cent share. Wales accounted for 2.4 per cent of construction contracts awarded.

Tom Hall, chief economist at Barbour ABI and AMA Research, said: “Contract awards were
strong in February, and with the UK Budget announcement, promised investment should see contract awards hold up – particularly for the residential and infrastructure sectors. However, despite the proposed funding, with the rapid spread of coronavirus across the globe, the trend is likely to be downwards from here, and significant government action will be needed to support businesses and citizens as the social and economic impacts are felt.”

Download the full report here on the Barbour ABI website.

Image credit | iStock