Figures released last week (20 November) reveal that the value of commercial and retail construction contracts awarded in October reached its highest level in two years.
,Barbour ABI, which is a chosen provider of construction data to the Office for National Statistics (ONS) and the government, has published its latest Economic & Construction Market Review, revealing that the value of commercial and retail construction contracts totalled more than £1.2 billion in October based on a three month rolling average, a 15.9% increase on September and 74.7% higher than October 2013.
,The report also shows that the sector accounted for 16% of the total value of all construction contracts UK-wide, with more than a quarter (25.3%) of these awarded in London.
,Michael Dall, lead economist at Barbour ABI, commented: “The value of construction contracts awarded in the commercial and retail sector in October rose to its highest level since 2012, which is hugely encouraging for the wider industry.
,“It’s no surprise that London was the main location of activity in the sector this month with 25.3% of the value of all contracts awarded, largely due to the £80 million office development on 4 Kingdom Street, Paddington, the mixed use development at North Wharf Gardens, also in Paddington, worth £65 million and the Charter Place complex in Watford valued at £25 million.
,“Offices were once again the dominant type of project in the sector, accounting for 68% of the value of contracts awarded in October, with general retailing the other significant category at 23%t of contract award value.”
,The Economic & Construction Market Review is a monthly report designed to give valuable insight into UK construction industry performance. It is compiled from Barbour ABI’s records of construction data for every UK planning application, and key indicators, such as the Office for National Statistics’ Construction New Orders data.
,Watch Michael Dall interview Noble Francis, economics director at the Construction Products Association, about this month’s ECMR: