Budget-funded infrastructure projects push up construction market in Romania

The construction works index in Romania rose by 34.3% YoY in October, driven by the civil engineering works (+50% YoY) and non-residential buildings sector (+42% YoY).

The seasonally-adjusted index increased by another 5.5% in the month, resulting in an overall 12% leap over the past three months when the same two sectors outperformed (rising by +18% and 12%, respectively) in contrast with the 5.5% contraction seen in the residential buildings segment.

The construction activity marked for the third month in a row a new record for the past decades. This seems to be the combined effect of rising interest rates and more cautious decisions on the side of the household (residential buildings segment) and, on the other hand, the effect of a sharp expansion of logistics projects and more abundant public spending.

Regarding public spending, the figures suggest significant amounts are channelled to new constructions and capital repair works.

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