Construction contract awards increased by 12% in June as a number of high-profile projects were given the green light, according to the latest Economic & Construction Market Review from industry analysts Barbour ABI.
Last month £5.5bn worth of contracts were awarded across all regions of Great Britain, based on a three-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, helped largely by the North Quay Poplar development contract award – the largest project across all of construction on the month, worth £800 million.
Residential building produced the highest value on the month, reaching £2.5 billion, bouncing back after a dip in May when it decreased to £1.7 billion, with four of the top ten biggest projects in June coming from the sector.
There were also monthly increases in industrial, commercial & retail and medical & healthcare. The largest decrease came from infrastructure, which lacked a high-value project on the month to help increase its figures.
Outside of London, the dominance continued across southern England with the South East in second place for construction contract value with £713 million awarded, followed by the South West in joint third place with the North West, each tied at £627 million.
“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 sector steady,” said Michael Dall, lead economist at Barbour ABI. “However, with declines in value from hotel, leisure & sport and in particular infrastructure, there is continuous pressure on residential to achieve high values every month.
“With the Governments increasing focus on raising the levels of major infrastructure projects, it’s surprising to see a lack of development in this sector across June. The anticipation however, is that we will see larger public sector contracts come to the forefront, such as offshore wind farms, energy plants and motorway upgrades as we continue into 2017.”