According to Barbour ABI, following the first full month post-Brexit, the infrastructure sector experienced a decline, with the value of contracts for July decreasing by 20% to £1.5 billion.
According to the August edition of the Economic & Construction Market Review from Barbour ABI, construction new orders in July were down to £5.8 billion, a month on month drop of £400 million. The other prominent sector in construction was residential, which saw a decrease of 7% in contract value and a drop of 2000 units compared to the previous month.
The value of contracts for commercial office construction however, increased in July by 22% compared with June, worth a total of £648 million on the month. £250 million of that total came from the West Midlands development Paradise Circus, an eight storey office block.
The Industrial sector also performed well in July, with its value the highest it has been so far in 2016, reaching £564 million. This was helped by the commissioning of Reckitt Benckiser £100 million new global centre for scientific excellence in Kingston upon Hull.
Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “In the first full month since the vote to leave the European Union, the value of construction projects reaching contract award stage declined in July. This is unsurprising given the uncertainty in the economy. However, it is the infrastructure sector which has performed particularly poorly this month and with the change in narrative from the current Government, it puts more emphasis on any fiscal stimulus that they may be planning to make.”
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/europe-cis/22082016/uk-infrastructure-sector-experiences-decline-129/