Construction works increased by 8.6% y/y in April, following the first annual drop since October 2014 recorded a month earlier, according to preliminary data published by the state statistical institute today (all prints in adjusted terms). Thus, the indicator returned to the positive trend with the strongest annual rise this year. The improvement was backed by strong increases in the civil engineering and current repair works, which mainly include public investments in infrastructure. The same segments performed the best in the previous period. New construction works also rose by double-digit pace y/y in April, most probably fuelled by a government project for building social flats for young families, which was announced earlier this year.
Broadly, the construction sector is not yet recovering in line with expectations and the mood in the sector. However, the high base and unfavorable weather conditions are most likely holding back better performances so far. The state’s projects in the field seem to have started, as shown by the developments in the specific construction segments. We expect improvements in the following periods, as the warm season approaches. In addition, the regional administrations are more motivated to initiate projects in the sector because the general elections are near and because the government made procedures to absorb EU funds easier and faster and enabled available funds for co-financing.