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Construction confidence indicator in June 2019

Construction confidence indicator in June 2019

Last update: 28.06.2019
Ilustratívny obrázok/Illustrative image
Publisher: Headquarters Bratislava
Topic: Macroeconomic statistics
Domain: Business tendency surveys and consumer opinions
Publish Date: 28.06.2019

In June compared with the previous month, the confidence indicator in construction decreased by 2 points to -23,5 due to more unfavourable evaluations of the expected employment. The current result is exceeding the long-term average by 1,5 points.

Compared with the situation in the previous month, the indicator of the building activity trend over the past three months deteriorated by 3 points to 6, mainly due to enterprises performing civil engineering and specialised construction works. A decrease of the construction activity was recorded by 6% of respondents, its increase by 27% of respondents, and 67% of enterprises considered it to be unchanged. Compared with May, the evaluation of the current level of overall order books remained unchanged, at the current level (-34). 35% of respondents consider them to be insufficient, 64% sufficient and for 1% of them the current level of orders was more than sufficient. 33% of respondents included shortage of employees, 30% financial constraints, 26% insufficient demand. 18% weather conditions and 2% lack of materials and mechanisms into the most significant factors* limiting a growth of construction production currently. Respondents also report: lack of qualified staff, lack of transparency of public procurement and long response time from authorities when issuing building permits. 21% of enterprises do not see any barriers of growth currently. Expectations of respondents in estimation of the employment development deteriorated month-on-month, the business balance of the expected number of employees, decreased by 4 points to -13. Over the next three months, 19% of respondents expect a decrease of employment, 65 % expect a stable development and 16 % of enterprises expect an increase. Compared with May, the business balance of the expected construction production prices over the next three months improved by 8 points to -1, mainly due to enterprises performing civil engineering and specialised construction works. 17 % of respondents expect an increase in the number of employees, 72% expect a stabilisation and 11% of enterprises assume a decrease.

  In June 2019, 331 respondents participated in the survey representing the entire construction sector.

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