Figures released on 17 July show the total value of new construction contracts fell in June to £5.2 billion, a decrease of 0.7% compared to May.
The results come from Barbour ABI's latest Economic & Construction Market Review, yet it says industry should remain optimistic about its long-term future as construction levels were 10.5% higher when compared with June last year.
Michael Dall, lead economist at Barbour ABI, commented: "While this is only the second month this year in which month-on-month values have fallen, we’re still not seeing the same high rates of growth as we did towards the end of 2013. This is an indication that the growth we’ve become used to over the last twelve months is beginning to plateau.
"Looking ahead, the long-term picture is still one of growth. Year-on-year increases are a positive indication that the industry is continuing to grow, even though this is at a slower rate. We are confident that it is a picture of moderate growth going forward but perhaps not the booming rates that the financial markets seem to be expecting.
"The government’s updated construction pipeline released on 2 July, which represents £116 billion of work, should also be a huge boost to the infrastructure output has been disappointing up until now."
The report also revealed that residential construction continues to hold around a third of the total value of contracts awarded in the UK. Despite this, the sector saw a 7.6% decrease in the total value of contracts compared to last month, totalling £1.67 billion.
London was the UK’s hotspot for construction activity in June again, accounting for 17% of the UK total as a result of big ticket projects including the £100 million redevelopment of the International Broadcast Centre at the Olympic Park and the residential development at North Wharf Gardens in Paddington Basin.
The Economic & Construction Market Review is a monthly report designed to give valuable insight into UK construction industry performance.
