The UK construction industry was awarded £6.2 billion worth of contracts in June, according to the latest edition of the Economic & Construction Market Review.
The figure is the highest of any month so far this year, in spite of uncertainty created by the UK’s vote to leave the EU.
Industry analysts Barbour API found that both residential and infrastructure had year on year rises in June, with contract values increasing by 26 per cent and 14 per cent respectively.
The figures show that London is back on top with the highest construction contract value by location, after being overtaken by Scotland in the previous two months. The city’s construction boost was helped by the award to develop Bechtel House Hammersmith, valued at £275 million and the first phase of the £100 million Albert Dock project. Office construction reached a total of £650 million worth of contracts, contributing to 81 per cent of all commercial and retail construction value.
Michael Dall, lead economist at Barbour ABI, commented, “With the majority of the sector under the assumption that the UK would not vote to leave the European Union the result left many surprised, and our June figures are under the assumption that it would be ‘business as usual’.”
“We have seen housebuilder stocks fall in the wake of the vote and anecdotal evidence that projects are being cancelled. However, that is not evident in the data as of yet and it is a case of wait and see in terms of the impact Brexit may have.”