Construction and manufacturing pick up pace

2010-01-12

November 2009 ushered in a clear improvement in the performance of two industries – construction and manufacturing – output of both expanded by close to 10%. The eleventh month also saw the beginnings of a trend reversal in construction prices.

In November 2009, construction and assembly output clearly picked up, rising 9.9% year on year. As a result, in the first eleven months of the year it increased 3.9% in nominal terms and 4.0% in real terms, to PLN 69.6bn. The November growth was a consequence foremost of the work undertaken by civil engineering enterprises (their output expanded by 23.5%); though companies erecting buildings also posted growth, of 5.3%.
It is worthwhile to note that the price trend in the construction has started to reverse as of November when for the first time since July 2007 the price growth of construction and assembly output was higher on a month-on-month basis. We believe that construction prices will enter an uptrend in 2010, though the trend will not gain momentum till 2011 – together with a clear pick up of pace in large-size construction works.




Together with the better growth in the construction industry, November was also a month of a clear improvement in the performance of manufacturing – after many months of declines, industrial output sold grew by 9.8%. Yet, the high increases in both industries were primarily the result of low comparative bases. In comparison with a year earlier, output increased in 26 of the 34 components that comprise industrial output, with the highest increase (of 38.4%) noted in manufacture of chemicals and chemical products. For the construction sector, it is also material that two other manufacturing sectors noted growth: manufacture of metals (output up by 2.5%) and manufacture of materials from other non-metallic mineral products (up by 7.5%).




Bartlomiej Sosna
Senior Construction Analyst
PMR Publications
bartek.sosna@pmrpublications.com





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