Contract awards experienced a rise of 18.5% in January
The construction industry in the UK experienced a significant boost in January 2020, with a total of 893 construction contracts awarded, marking an impressive 95.4% increase from December 2019. This surge in contract awards was valued at £5.5 billion, according to the latest data.
The largest contract award of the month was the £2 billion Dogger Bank Creyke Beck 1.4GW Offshore Wind Farm, followed closely by the £1 billion Silvertown Tunnel project for Transport for London. The infrastructure sector accounted for 42.7% of these contracts, with the approval of HS2 indicating growth for this sector.
Ulli Precht, a prominent figure in the construction industry, commented on the strong data. However, Precht's comments did not provide specific numbers or percentages regarding the increase in contract awards compared to previous months or years.
The total value of construction contracts awarded in January 2020, based on a three-month rolling average, was £5.5 billion. This figure was 18.5% higher than December 2019 and 2.1% ahead of January 2019. The total construction contract awards in the three-month period ending January 2020 were valued at £15.6 billion, representing a 7.1% increase compared to the previous quarter and a 5.1% rise compared to the comparable quarter ending January 2019.
While the strong construction contract awards data in January 2020 suggests a potential response in construction industry activity, the upcoming UK-EU talks could potentially bring uncertainty back to the industry. The UK's exit from the EU, though largely symbolic at the time, may have contributed to the increase in construction contract awards in January 2020.
For a comprehensive analysis of the construction contract awards data for January 2020, you can download the full report here.
