Since the UK voted to leave the EU the value of infrastructure contracts has fallen 20 per cent
New figures have revealed a significant drop in the value of infrastructure contracts since the vote to leave the EU was taken.
According to figures from industry analysts Barbour ABI, contracts in July saw a 20 per cent decrease in value, falling to £1.5bn when compared to June.
The Economic & Construction Market Review also found new construction orders were down to £5.8bn in July. This was a month-on-month drop of £400m.
Infrastructure and residential saw a prominent fall, with the latter seeing a seven per cent decrease in contract values and a drop of 2,000 units compared to the previous month.
However, office construction saw growth, increasing 22 per cent when compared to June and reached a total of £648m on the month.
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.”
