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02/12/2020

Drop in contract awards value in October

Words: Laura Edgar
Decline / iStock-163210926

In October, the value of construction contract awards totalled £4.9 billion based on a three-month rolling average, according to industry analysts at Barbour ABI.

This is a decrease of 9.4 per cent compared with £5.4 billion in September and 1.1 per cent lower than October 2019.

Barbour ABI's monthly Economic & Construction Market Review reports that in the three months to October 2020, £14.7 billion worth of contracts were awarded – 75.7 per cent higher than the value for the previous quarter. This figure is 1.3 per cent higher than the same quarter ending October 2019.

Regionally, the North West came out on top, with 19.8 per cent of awards and 120 projects.

London came in second with a share of 13.8 per cent, and the East of England and Scotland came joint third with 11.1 of awards.

The residential sector accounted for 36.8 per cent of awards, while 22.1 per cent were for the infrastructure sector.

Tom Hall, chief economist at Barbour ABI and AMA Research, said: “The value of contract awards decreased from £5.4 billion in September to £4.9 billion in October but the number of awards continued to increase month on month. It is encouraging that since coming out of the first UK-wide lockdown, contract awards remain at long-term average levels. While there remain many downside risks, more positive news has emerged over the last month, not least construction sites staying open over the second lockdown plus positive vaccine trials. We therefore have a greater level of confidence that activity will be maintained over the short term.”

More information can be found on the Barbour ABI website.

Image credit | iStock

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