Construction industry bounces back after recent stall in growth
Contract awards in the construction industry increased by 12% in the latest survey from Barbour ABI, as a number of high-profile projects were given the green light. The latest edition of the company’s ‘Economic and construction market review’ from the company reports that the levels of construction contract values awarded in June across all regions of Great Britain totalled £5.5 billion based on a 3-month rolling average, an increase on the £4.9 billion from May.
London led all regions, with 26% of the total construction contract value for June. This was greatly helped by the North Quay Poplar development contract award, worth £800 million, the largest project across all construction on the month.
Residential building produced the highest value for the month, reaching £2.5 billion, bouncing back after a dip in May when it decreased to £1.7 billion. Four of the top-ten biggest projects in June came from the residential sector. There were also monthly increases in industrial, commercial and retail, and medical and healthcare.
The largest decrease came from infrastructure, which lacked a high-value project on the month to help increase its figures.
Michael Dall, lead economist at Barber ABI, said, ‘The construction sector bounced back after an election-focused month in May, as the residential sector once again performed strongly, continuing the trend of it holding the construction steady.
‘However, with declines in value from hotel, leisure and sport and, in particular, infrastructure, there is continuous pressure on residential to achieve high values every month.’