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21/08/2020

Construction sectors improved in July, stats suggest

Words: Laura Edgar
Upwards extensions / iStock-115939402

The value of construction contracts awarded in July 2020 was £6.3 billion, up from a value of £3.1 billion in June. 

In May, the value was £1.6 billion.

This is according to industry analysts Barbour ABI’s latest Economic & Construction Market Review.

The review also shows that the number of awards increased in July to 860, an increase of 80.3 per cent on June. 

Barbour ABI said the residential and infrastructure sectors accounted for over 50 per cent share of total contract awards, and that every sector had at least 33 per cent growth in July when compared to June. Some sectors reported a 98 per cent growth. 

Key figures arising:

  • Residential sector contract awards increased by 65.9 per cent compared to June.
  • The infrastructure sector climbed 75.4 per cent in July, compared to June.
  • Education contract awards increased by 43.5% per cent on June.
  • London accounted for 18.5 per cent of awards, the most in July. The second largest region was Scotland with an attributable share of 17.1 per cent and the South East with a 12.8 per cent share of awards in third.

Tom Hall, chief economist at Barbour ABI and AMA Research, said, “While the economy entered a recession, the construction industry has seen significant increases in activity over the last two months. This could potentially be due to the restarting of activity that had stalled in previous months. A strong planning pipeline could suggest the industry will continue to strengthen but at what rate remains to be seen.”

Download the full report here on the Barbour ABI website.

Image credit | iStock

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