Construction works in Croatia flat y/y in Q2

Construction works in Croatia flat y/y in Q2
By bne IntelliNews September 1, 2017

The construction works index in Croatia remained constant on an annual basis in Q2, according to statistics office data released on August 31. The index had advanced by 3.6% y/y in Q1, after a moderate 2.7% y/y growth last year.

Civil engineering works keep loosing ground, while the overall growth is entirely supported by the construction of buildings.

The 12-month rolling average construction works volume advanced by 2.7% y/y, remaining within the 2.4%-3% y/y band for the eighth month in a row. On a broader perspective, the construction volume bottomed out in 2015 but is gaining slowly ground while remaining some 45% below the pre-crisis (2008) levels.

The volume of civil engineering works contracted by 4.5% y/y in Q2, after a nearly flat performance in Q1 (+0.6% y/y). Last year, the volume of civil engineering works contracted by 2.5% y/y. The annual decline of the 12-month rolling civil engineering works has never turned positive since 2008, but it eased to below 2% y/y in March to June 2017.

In contrast, the construction of buildings advanced by 4.8% y/y in Q2, after the 6.5% y/y gain in Q1. The recovery trend in the building construction segment started in 2015, when the 12-month rolling index turned positive in November. The 12-month rolling growth rate maintained close to 9% y/y in October 2016 to January 2017 to slightly slow down later (to 7.2% y/y in June).