The value of commercial & retail construction contracts in August topped £1.5billion, the highest level in more than four years (based on a three month rolling average).

According to the latest Economic & Construction Market Review from Barbour ABI, it was a busy August for the commercial & retail sector, but in particular office construction, which dominated with 84% of the value of contracts awarded.

To put these values into perspective, the last three months have each seen more than twice the value of work in the three months to the end of May. Compared with the same period last year, the three months to August saw growth of more than 70%.

London predictably led all regions with more than 60% of the total, including eight of the top 10 biggest projects. Contracts for major office developments finalised included the £150million Park Place development in Canary Wharf and the £100million Marble Arch project in Westminster.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: "It’s not surprising to see London dominating the sector once again. As a global city, we’re seeing more and more demand for office space in the capital, hence the massive projects awarded contracts. Even with the recent spike in office construction work being put on hold, this isn’t putting off investors rolling the dice with new projects looking towards the future and the potential gains to be made from London property."

His forecast: "The long term growth for this sector is looking positive – and when commercial & retail is strong it can often be a sign that the economy as a whole is performing well."