While figures released last week reveal that the total value of new construction contracts fell in June, the industry should remain optimistic about its long-term future according to construction intelligence expert, Barbour ABI.
,Barbour ABI, which supplies construction data to the Office for National Statistics (ONS), Cabinet Office and Treasury, has published its latest Economic & Construction Market Review, which shows that the total value of all new construction contracts awarded in June totalled £5.2 billion, a marginal decrease of 0.7% compared to May.
,However, construction levels were 10.5% higher when compared with June last year, which is further evidence of the improving performance of the industry in the long term.
,Michael Dall, lead economist at Barbour ABI, commented: “While this is only the second month this year in which month-on-month values have fallen, we’re still not seeing the same high rates of growth as we did towards the end of 2013. This is an indication that the growth we’ve become used to over the last 12 months is beginning to plateau.
,“Looking ahead, the long-term picture is still one of growth. Year-on-year increases are a positive indication that the industry is continuing to grow, even though this is at a slower rate. We are confident that it is a picture of moderate growth going forward but perhaps not the booming rates that the financial markets seem to be expecting.
,“The government’s updated construction pipeline released on 2 July, which represents £116 billion of work, should also be a huge boost to the industry as infrastructure output has been disappointing up until now.”