Research shows ‘significant’ increase in UK construction activity


ALL construction sectors in the UK showed signs of increased activity in July, according to the latest research from industry analyst Barbour ABI.

The total value of construction contract awards in July was £6.3 billion, a dramatic rise from £3.1 billion in June and £1.6 billion in May, as the sector continues its recovery following the Covid-19 lockdown period.

The number of awards also increased in July to 860 – a rise of 80.3% on June. The residential and infrastructure sectors accounted for over half of total contract awards.

The stats were revealed in the latest edition of the Economic & Construction Market Review from Barbour ABI, which highlights levels of construction contract values awarded across Britain.

Every sector had at least 33% growth in July. The residential sector contract awards increased by 65.9%, infrastructure by 75.4% and education contract awards by 43.5%.

London accounted for for 18.5% of awards. The second largest region was Scotland with 17.1%.

Tom Hall, chief economist at Barbour ABI and AMA Research said, “While the economy entered a recession, the construction industry has seen significant increases in activity over the last two months. This could potentially be due to the restarting of activity that had stalled in previous months. A strong planning pipeline could suggest the industry will continue to strengthen but at what rate remains to be seen.”