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27/11/2019

October sees rise in values of construction contracts awarded

Words: Laura Edgar
House price growth / Shutterstock

Construction contract values awarded totalled £4.9 billion in October 2019, based on a three-month rolling average – an increase of 4.1 per cent on September 2019.

This represents a year-on-year increase of 28.5 per cent.

There were 864 contracts awarded in October, 4.0 per cent higher than in October 2018.

According to construction industry analyst Barbour ABI, contract awards numbers remain “volatile” despite the increase, with “evidence of a downward trend” for overall contract awards since January 2019.

In the three-month period ending in October 2019, the value of contract awards was £14.5 billion, which is a decline of 14.0 per cent when compared with the previous quarter and the 14.4 per cent lower than for the same quarter in October 2018.

The organisation's latest Economic & Construction Market Review found that the residential sector accounted for 28 per cent of all contract awards, with the value totalling £1.7 billion, 9.5 per cent less than September and 12.5 per cent lower than October 2018.

The industrial sector accounted for 22 per cent on contract awards. The total value of the contract was £735 million, 39.9 per cent more than September.

According to the market review, the most valuable contract award for October was the Fawley Refinery Upgrades in Southampton – valued at £800 million.

Tom Hall, chief economist at Barbour ABI and AMA Research, said: “The residential sector has experienced slightly slower activity throughout 2019, there has been a small pickup in London, but data shows that there is a cooling off in activity throughout the rest of the UK. The most recent Help to Buy data shows reduced volumes which would also support this view.”

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

Image credit | Shutterstock

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