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28/08/2019

Construction values rose in July

Words: Laura Edgar
Construction / Shutterstock_128384549

Construction contracts worth £5.1 billion were awarded in July 2019 – an increase of 1.8 per cent on June, according to construction industry analyst Barbour ABI.

This value is based on a three-month rolling average.

Yearly comparisons, the analyst explains, indicate that the value of contract awards in July 2019 was 11 per cent higher than July 2018.

The latest edition of the Economic & Construction Market Review shows that in the three-month period ending July 2019 the combined value of construction contract awards was £15.3 billion – a 14 per cent increase compared with the previous quarter, and 13.8 per cent higher than the same quarter in 2018.

According to the statistics, 1,011 contracts were awarded in July – 38.5 per cent more than in June and 3.7 per cent more than July 2018.

London topped the regions for contract awards in June, with 32.1 per cent of the value share. The month’s largest contract award was Stoney Street commercial and office development, part of the Borough Yards redevelopment in Southwark.

In Scotland, the largest project was Greenbank Crescent, an energy-from-waste facility worth £150 million.

Sector analysis shows that the largest share of contract awards in July was the residential sector at 39.9 per cent, followed by the commercial/retail sector at 16 per cent. The industrial sector won a 13.6 per cent share of the contracts.

Tom Hall, chief economist at Barbour ABI, said: “The planning pipeline continues to defy recent negative economic news. We have seen significant activity for contact awards across the UK for the past three months, with a 13.8 per cent increase on the comparable quarter ending July 2018. Over the next three months we will be rolling steadily towards the Brexit deadline, which may impact figures as uncertainty once again sets in.”

The latest Economic & Construction Market Review can be found on the Barbour ABI website (pdf).

Image credit | Shutterstock

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