Despite a dip in construction new orders, housebuilding contracts rose by 13 per cent year-on-year to £1.7 billion in August as the “robust” sector continued to defy the negative Brexit predictions, reveals the latest figures from industry analysts Barbour ABI.
According to the Economic & Construction Market Review, residential and infrastructure sector “kept the industry on a steady pace” in the eighth month of the year, delivering £3 billion of the £5.5 billion total construction contracts awarded.
In the traditionally slow summer month, construction new orders fell to £5.5 billion in August – a month-on-month drop of £300 million – while the commercial and retail sector continued its long-term struggle slipping 43 per cent compared to the same month in 2015.
According to Michael Dall, lead economist at Barbour ABI, the sector is yet to experience the forecasted post-Brexit effects.
“The mixed results from the residential sector has still been robust enough to keep the industry in a position to potentially grow in the near and long-term future,” he says.
“Developers are also keen to keep progressing with major projects, such as the £750 million Galloper offshore wind farm and the £150 million Greenwich Peninsula residential development commissioned this month alone, which in turn is helping to build confidence and provide a well needed boost across the industry.”