Home Business News Number of contracts awarded increase in June

Number of contracts awarded increase in June

by LLB Editor
24th Jul 20 8:54 am

The total value of construction contract awards in June 2020 was £2.2bn 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.

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, valuing in at £150m.

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.”

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