Commercial construction soars by 95.8% in August
The latest figures from Barbour ABI revealed that the value of commercial and retail construction contracts totalled more than £870 million in August 2014, representing a 95.8% increase compared to the same month last year and a 17.4% increase from July 2014. The sector accounted for 26% of the total value of all construction contracts UK-wide, with 54% of these awarded in London.
“Commercial and retail construction has seen a real resurgence recently,” said Michael Dall, Lead Economist at Barbour ABI. “This is mainly due to big ticket projects in London and further afield, such as the £420 million contract for 10 Fenchurch Street and £100 million commercial developments in Branston, Staffordshire, and Botley, Oxfordshire, respectively.
“Once again, offices were the dominant type of project in the sector, accounting for 71% of the value of contracts awarded in August, with general retailing at 23%. Looking ahead, the sector should continue to prosper as long as the Capital remains an attractive proposition for investors.”
London dominates UK construction in August
The value of construction contracts in London totalled more than £1.6 billion in August, accounting for 30% of the overall contracts awarded UK-wide. The Capital accounted for 54% of the total value of commercial and retail construction contracts awarded, as well as 29% of residential and 27.2% of education.
“London’s dominance across these key sectors is mainly due to big-ticket projects such as the commercial scheme at Fenchurch Street, The City North Development in Finsbury Park worth £130 million and a contract for the Imperial West site as part of Imperial College valued at £100 million,” said Dall. “UK-wide, construction contracts totalled more than £5.3 billion in August, a 16.6% increase on the value recorded in August 2013, an indication that this year has seen a comparatively stronger summer for the construction industry.”
Read Barbour ABI’s latest Economic & Construction Market Review here.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.worldcement.com/europe-cis/19092014/uk-construction-news-from-barbour-abi-520/