The value of all
construction contract awards in August 2019 was £4.9bn based on a three-month
rolling average, which is a decrease of 5.6% on July, and a decrease of 18.7%
when compared to August 2018.
However, in the
three-month period ending August 2019, total construction contract awards were
valued at £15.2 billion which is an increase of 2% on the previous quarter and
1.8% higher than for the comparable quarter ending August 2018.
This figure has been
held up by several substantial contract awards in June and July 2019.
The latest edition
of the Economic & Construction Market Review from industry analysts Barbour
ABI, highlights levels of construction contract values awarded across Great
Britain.
The residential
sector continues to dominate contract awards and held the largest share in
August with 42.5%. Dominance by the residential sector meant that all other
sectors have a much smaller share this month. Infrastructure was the second
largest sector in August with 14.0% of awards, followed by education with a
share of 11.4% which was only marginally ahead of the industrial sector
accounting for 11.3% of construction contract awards.
The leading region
in August was London with a share of 17.0% of awards, followed by Yorkshire
& Humber with a share of 13.5% and then the East Midlands with 11.0% of all
construction contract awards.
The largest contract
award in August was the £120 million development by the University of
Leicester, for a new academic building and 550 space multi-storey car park on
the Freeman’s Common site.
Tom Hall, Chief
Economist at Barbour ABIand AMA Research said: “The decline in project awards
in August may be due to seasonality, and follows a strong June and July.
However, it is concerning to see a 18.7% decline compared to August 2018.
"The total
value of contract awards was held up by the residential sector. While the
Spending Review announced by the Government this month suggests future
increases in investment for sectors including infrastructure and medical &
health, it will take a while for projects to commence.”
