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London Construction Industry Rises 20% After Successful August

August is traditionally a slow month in the London construction industry, due to summer holidays and a consequent decreased demand.

Last August, however, broke sharply with industry tradition, as the value of newly awarded contracts reached a total of £5.8bn based on a three-month ongoing average. This represents a 7% increase and is the highest figure recorded since last March.

The most recent edition of the Barbour ABI Economic & Construction Market Review, which contains industry analyses and insights, has spotlighted the varying values of August construction contracts across all regions of the UK. Residential construction, in particular, showed a strong performance, accounting for £2.7bn.

Barbour ABI lead economist Michael Dall commented on the new figures by saying that the UK construction sector can once more welcome a strong showing from the residential sector, which delivered £1.8bn more than any other sector throughout August, along with a 55% increase compared with August 2016.

The London construction industry has surpassed all the output of other regions throughout the country, with 20% of the national construction contract value in August. The capital accounted for the month’s two highest valued contracts: 1 Park Place, valued at £200m and the £150m residential development at Wembley Park.

The North West region followed London’s example with 14% of the total value with regards to the Frontier Business Park development in Blackburn, which has been valued at £80m.

The two largest projects in the South East were located in Canary Wharf and in Essex, where the Intu Leisure Lakeside area is situated.

Mr Dall said that it was encouraging to see such a steady and substantial increase in the number of projects in the London construction industry, especially larger projects coming from the retail and commercial sectors.

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