September saw a fall in the value of construction contracts awarded, after the high of August.
According to the monthly release from Barbour ABI, the leading provider of construction intelligence, the value of contracts awarded within the construction industry for September hit £5.6 billion.
Based on a three-month rolling average, this represents a drop of 6.1% from the £6 billion recorded in August, which itself was the best-performing month so far in 2018, and 6.5% higher than the figure for July.
The value of construction contracts awarded in September was higher than the £4.6 billion awarded in July, and tallies up with the recent output figures released by the Office for National Statistics (ONS) which revealed a 2.9% rise in activity in the last three-month rolling quarter.
Figures reveal that September’s value of construction contracts awarded was almost 29% higher than in July, and yet, when compared to September 2017, the value has declined sharply, by almost a fifth (19%).
For quarterly analysis too, the value of contracts awarded declined; in the three months to September 2018, the value hit £16.2 billion. For the same time last year, this figure was £18 billion.
Of greater concern is the huge fall in the number of projects awarded. In September, this was 674, some 40.2% lower than in August and it also compares unfavourably to September 2017, with the number of contracts awarded down by almost 15%.
Once again, London accounted for the largest share of contracts awarded, following on from the trend of August; in September, 18.2% of the contracts awarded were done so in the capital.
Of the contracts handed out, three of the top four in terms of value came from London, including the most lucrative which will see a mixed use scheme created at Heron Quays West, worth more than £187 million.
Three other projects awarded in September touched the £100 million mark, including a London Overground infrastructure contract.