Contract awards continue upwards trend in September
The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights has reported that the total value of construction contract awards in September 2020 was £5.4 billion based on a three-month rolling average. This is 21.2% higher than for August and is also 13.8% higher than September 2019, .
Quarterly analysis indicates that total construction contract awards were valued at £13.5 billion in Q3 2020. This is 47.1% higher than Q2 but is 8.4% lower than for Q3 2019. Raw monthly data has seen significant uplift in September to £6.0 billion which is an increase of 52.5% on the £3.9 billion in August.
Analysis by sector indicates that residential maintained lead status in September accounting for 32.8% of awards. Infrastructure was the second largest sector in September with attributable share of 20.8% of awards. The commercial & retail sector was the third largest this month accruing 16.1% of the total.
Regional analysis shows that London was the leading region in September with 22.6% of awards. The second largest region was the East of England with 13.7% of awards and was followed by the West Midlands which accounted for 11.0% of awards.
Commenting on the figures, Tom Hall, chief economist at Barbour ABI and AMA Research said: “After three months of recovering activity, contract awards over July-September returned to pre-Covid 19 average levels. Given the size of the shock to the construction industry and the wider economy that is cause for celebration. However, these numbers will contain an element of catch-up from the lost activity in April-June, so underlying activity is likely to be somewhat weaker than the headline numbers.
“The recovery so far has been evident more in the public and infrastructure sectors, with the commercially minded sectors remaining slightly subdued. With significant uncertainties remaining it will be interesting to see how the situation evolves over the coming months”
Download the full report here: http://ubm.io/2FRLrwm
