Boost To Number Of UK Construction Contracts Awarded
There was a significant increase in the number of construction contracts awarded in the UK in June, compared to the previous month.
Construction Europe shared the figures from Barbour ABI, which found that the number of construction projects awarded climbed by 81 per cent last month.
In total, 477 new contracts were signed in June, with this business worth an estimated €2.42 billion (£2.2 billion), based on a three-month rolling average.
However, while it’s positive to see a greater number of contracts being signed within the construction sector, the value of those contracts is significantly lower than it was in June 2019, with the Barbour ABI analysis showing that contract values have dropped by 57.3 per cent in the past year.
Although the largest single contract awarded was for an infrastructure project – Gatwick Airport’s railway station refurbishment – the news provider noted that residential construction took the greatest share of the projects, accounting for 39 per cent of new contracts in June.
In terms of where in the UK these projects are, London and the south west were the top two locations, with the north west of the country in third spot taking 13.6 per cent of the new construction contracts awarded.
At the beginning of July, the IHS Markit/CIPS UK Construction PMI revealed a sharp increase in construction output in June of this year, which was better than many analysts had expected.
In June, the PMI leapt into positive territory with a reading of 55.3, up significantly on the 28.9 recorded in May and indicating that the UK’s construction sector is getting back on its feet after the disruption caused by the Covid-19 pandemic.
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