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Construction confidence indicator in April 2021
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Construction confidence indicator in April 2021

Last update: 29.01.2022 | Number of views: 377
Ilustratívny obrázok/Illustrative image
Publisher: Statistical Office of the SR
Topic: Macroeconomic statistics
Domain: Business tendency surveys and consumer opinions
Publish Date: 29.04.2021




In April compared with the previous month, the seasonally adjusted confidence indicator in construction rose by 22,5 points to -25,5 due to more favourable evaluations of the overall level of orders and the expected employment.The current result is below 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 improved by 27 points to -2, mainly due to enterprises performing specialized construction works and civil engineering works. An increase of the construction activity was recorded by 11 % of respondents, its decrease by 17 % of respondents, and 72 % of enterprises considered it to be unchanged. Compared with March, the evaluation of the current level of overall order books improved by 21 points to -47. 0 % of respondents consider them to be more than sufficient, 52 % to be sufficient and for 48 % respondents the current level of orders was insufficient. 39 % of respondents included financial constraints, 36 % insuffient demand, 20 % shortage of employees, 16 % weather conditions, 12 % lack of materials and mechanisms into the most significant factors limiting a growth of construction production currently. Respondents also report: restrictions related to the coronavirus pandemic and their negative impact on the economy, loss of investors, employees tested positive for COVID-19 and competition. 16 % of enterprises do not see any barriers of growth currently. Expectations of respondents in estimation of the employment development improved month-on-month, the business balance of the expected number of employees, rose by 24 points to -4, mainly due to enterprises performing construction of buildings and civil engineering works. Over the next three months, 18 % of respondents expect an increase of employment, 64 % expect a stable development and 18 % of enterprises expect a decrease. Compared with March, the business balance of the expected construction production prices over the next three months increased by 21 points to 15. An increase in the price level of their own products is expected by 17 % of respondents, 80 % do not consider any price changes and 3 % assume their decrease.

Based on orders, companies have reserved work for 9,7 months, on average. By size categories, work is ensured mainly in enterpirses employing 500 and more people (15,5 months) and in terms of production specification, in enterprises employing civil engineering works (12,5 months). In territorial terms, the respodents confirmed the most works upon contract, the the region of Bratislava (12,7 months), the lowest in Trenčín (5,6 months) and Trnava (5,5 months).


Note: * In April 2021, 284 respondents participated in the survey representing the entire construction sector. The values of the confidence indicator in construction and the balances range from -100 (responses of all respondents are pessimistic) to 100 (responses of all respondents are optimistic). Confidence indicator and balances on republic level are seasonally adjusted.

 

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