Data from Barbour ABI reveals the value of construction contracts rose sharply in August.
Based on a three-month rolling average, the information from Barbour ABI, the leading provider of construction intelligence, highlights a sector that is staging an impressive recovery from the trials and tribulations earlier in the year.
Poor weather and uncertainty were chief barriers stunting growth in the early part of 2018; however, in August, the value of construction contracts awarded hit £6 billion, which is 28.9% more than the £4.6 billion worth awarded in July.
July’s figure also showed signs of recovery, given the value of contracts awarded was 6.5% higher than the previous month. August has accelerated the trend in some style.
Emphasising the progress that the construction sector has made, the figures produced by Barbour ABI has revealed favourable comparisons with value of contracts from August 2017.
According to the figures, there has been a 4.2% rise between August 2017 and August 2018.
In the rolling quarter covering the three months to August 2018, the total value of contracts awarded hit £15 billion. Although the last couple of months have been fruitful, the three-monthly figure is down from £18 billion worth of contracts awarded in the same quarter of 2017.
Despite that, August has been a successful month for the industry and the number of contracts awarded is higher than both July and the previous August.
With 1,127 awarded in August, it represents a 15.6% increase from July; in comparison with August 2017, the volume has risen by 1.8%.
The August data represents a “continuation of the positive conditions experienced in July, with an upward movement evident for both contract awards and number of contracts since June 2018.”
In terms of region, the East Midlands had the largest share of contract awards in August with 29%; the South East accounted by 14% of the contracts, with London in third with 13%.
Residential was the sector that had the most contracts awarded, with more than a third (36%), while infrastructure followed closely behind with 34%.
This indicates the demand in the economy, with housing very much on the agenda for growth.