Romanian constructors reduce activity by 7.5% YoY in Q3
The seasonally and workday adjusted output index in the constructions sector has constantly decreased since April, marking a significant 7.5% annual decrease in the third quarter of the year, according to data released by the statistics office INS.
The trend was visible in all three market segments over the past five months: residential, non-residential, and civil engineering. However, the residential buildings sector retains a substantial 29% YoY annual advance, while the non-residential buildings (-22% YoY) and civil engineering (-13% YoY) posted negative yearly performances.
In response to the unexpected negative developments in the sector of construction, the state strategy and forecasting body CNSP revised downward abruptly its forecast for the value-added generated by the sector this year to a dismal 0.2%, from 6.1% envisaged in August. Part of the revision may be attributed to the rise in the price of construction materials (and energy).
The sector is expected to recover in 2022 when the value-added generated by constructors would surge by 9%, driven by the much-expected projects financed under the Recovery and Resilience Program.
(Photo source: Pixabay.com)