Number of Contracts Awarded Increased in June while Value Drops from May

THE TOTAL VALUE of construction contract awards in June 2020 was £2.2 billion based on a three-month rolling average.

Compared to May, this is a decrease of 9.2% and is also 57.3% lower than June 2019. However, contract award numbers in June increased by 81.4% to 477, signalling an improvement in conditions.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain.

Residential dominates

The residential sector again dominated the share of contract awards with a total of 33.9%. Despite this, the largest project awarded for June was the in the Infrastructure sector with the Gatwick Airport railway station refurbishment, valued at £150 million.

London burgeoning

Analysis shows that London has had the largest share of contracts awarded in June at 26.1%. This is followed by the South East at 16.4% and then the North West at 13.6%. Wales was again the smallest region with only 1.4% of awards.

Tom Hall Chief Economist at Barbour ABI

Commenting on the figures, Tom Hall, Chief Economist at Barbour ABI and AMA Research said, “The UK economy plateaued in May as the easing of some lockdown restrictions mid-way through the month failed to significantly increase output.

“In-month GDP growth was 1.8% after the 20% contraction in April. With the outcome underwhelming compared to city economists’ expectations of 5.5% growth, output remains 25% down compared to February.

“June’s figures published next month will give a better understanding of how quickly lost output can be regained as larger parts of the economy resumed activity.”