A new report shows that the number of construction contract awards increased in June 2020 despite a dip in the total value. The Economic & Construction Market Review from Barbour ABI found that the total value of construction contract awards in June was £2.2 billion based on a three-month rolling average.
Compared to May, this represents a decrease of 9.2 per cent, and is also 57.3 per cent lower than June 2019. However, contract award numbers in increased by 81.4 per cent to 477.
“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 per cent after the 20 per cent contraction in April. With the outcome underwhelming compared to city economists’ expectations of 5.5 per cent growth, output remains 25 per cent 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,” commented Tom Hall, chief economist at Barbour ABIand AMA Research.
The residential sector dominated the share of contract awards with a total of 33.9 per cent. The largest project awarded for was the Gatwick Airport railway station refurbishment, valued at £150 million.
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