Romania’s construction works index down 8.3% y/y in Q2

By bne IntelliNews August 9, 2013

Romania’s construction works volume index shrank by 8.3% y/y in Q2 after a 4.4% y/y contraction in Q1, the statistics office reported. For H1, the average contraction rate was 6.2% y/y.

The seasonally- and workday-adjusted index further edged down by 1.5% q/q in Q2 after the 0.9% q/q drop in Q1. The adjusted index shows visible decline in the construction activity over the past five quarters toward the weakest post-crisis values.

Each of the three market segments* have contracted in Q2 [as well as in H1] but the steepest decline was seen in the residential buildings area – 13.5% y/y. The 20.5% y/y advance marked by this segment in Q1 is rather irrelevant since the activity in the first quarter of the year is rather subdued. For H1, the performance remains in the negative area with minus 1.5% y/y.

The civil engineering works marked the steepest decline in each of the two quarters and in H1 on average. The segment's works volume index decreased by 8.4% y/y in Q2 and 8.8% y/y in H1. This is in line with the weak public investments and lagging infrastructure projects.

* residential buildings, non-residential buildings, civil engineering

Construction Works Index 2009 2010 2011 2012 Q1-13 Q2-13 H1-13
Total -15.1% -13.2% 2.7% 1.4% -4.4% -8.3% -6.8%
Total, swda* q/q, m/m n.a. n.a. n.a. n.a. -0.9% -1.5% n.a.
  Residential bldgs -20.2% -35.7% -2.5% -13.3% 20.5% -13.9% -1.5%
  Non-residential bldgs -15.7% -13.6% 4.9% 2.7% 0.9% -6.2% -3.6%
  Civil engineering -12.2% -3.1% 2.9% 3.5% -9.7% -8.4% -8.8%
Source: INS; based on re-based indices 2010=100


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