Construction works decreased by 0.2% y/y wda in Oct, turning from a slight 1.4% y/y rise in the previous month (revised down from 2.0%), according to preliminary data published by the state statistical institute today (all prints in adjusted terms). Even if the fall was not significant, it was mainly triggered by decreases in capital repair and civil engineering works, which are strongly linked to the public investments. Thus, the sector’s developments remain highly dependent on state’s spending on housing and infrastructure projects that already proved weaker-than-expected this year. Meanwhile, the residential construction segment reported a strong annual jump in October, most probably sustained by the start of a new house construction project. The rise was among the strongest recorded this year, being outpaced only by the prints in February, when another new flats’ building also started building. The new construction and current repair segments increased moderately, by 5.5% and 3.4% y/y respectively in the month.
Broadly, the construction sector performed weak in October, despite a strong boost of new residential construction. The weak public investments keep dragging down the sector’s performance and would most probably continue on the same trend by the end of the year. The occasional private projects are maintaining the domestic construction afloat and away from notable worsening, but cannot consolidate it on a solid upward trend.