According to new results published on 20 November by Barbour ABI, the value of commercial & retail construction contracts awarded in October reached its highest level in two years.
Barbour ABI is a chosen provider of construction data to the Office for National Statistics (ONS) and the Government. Its latest Economic & Construction Market Review reveals that the value of commercial and retail construction contracts reached more than £1.2bn in October, based on a three month rolling average, a 15.9 per cent increase on September and 74.7 per cent higher than October 2013.
In addition, the report shows that the sector accounted for 16 per cent of the total value of all construction contracts nationwide, with more than a quarter (25.3 per cent) of these awarded in London.
Lead economist at Barbour ABI, Michael Dall, said: “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.”
He continued: “It’s no surprise that London was the main location of activity in the sector this month with 25.3 per cent 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 per cent of the value of contracts awarded in October, with general retailing the other significant category at 23 per cent 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.