The sector posted a 2.7% rise compared to May, its third consecutive rise. On an annual basis, it fell by more than 35%.
Construction collapsed by 32.7% in the first half of the yearas a result of the adjustment implemented by the Government of Javier Milei in the first days of his mandate. It happened despite the fact that In June, the sector recorded a slight monthly improvement, the third consecutive one.
According to a report published by INDEC this Thursday, activity in this sector rebounded 2.7% compared to May, although it sank 35.2% compared to June 2023. Thus, it was located 27.5% below the level of November, prior to the brutal stoppage of public works, and 33.7% behind last year’s peak.
Among the different construction inputs, the largest declines were recorded in ceramic sanitary ware, limestone granite tiles, and asphalt. Likewise, the production of ceramic floors and coverings, concrete, iron and steel, and hollow bricks also suffered higher than average declines.
Employment improved in May, but remains below November level
INDEC data also showed that in May construction employed 382,686 peoplewhich represented the first monthly increase since August 2023. Still, jobs were 18.1% lower than in May from last year.
Besides, the surface to be built, authorized for the building permits granted for the execution of private works in a representative list of 176 municipalities, registered in May 2024 a down 8.1% compared to the same month of the previous year.
The outlook for the coming months is not encouraging.
To assess the outlook for the coming months, INDEC conducted a survey of large companies in the sector, which showed unfavorable expectations regarding the level of activity expected for the period July-September of 2024.
Indeed, 59.1% of companies that carry out mainly private works expect that the level of activity in the sector will not change over the next three months, while 26.4% estimate that it will decrease and 14.5% that it will increase.
Among companies primarily engaged in public works, 48.7% believe that the level of activity will decrease during the period July-September 2024, while 41.4% believe that it will not change and 9.9% that it will increase.
Companies that carry out mainly private works and that expect that the activity of the sector will decrease in the next three months indicate as main causes of the decline in economic activity and price instability.
Meanwhile, companies that are mainly engaged in public works and that estimate a drop in activity in the sector in the next three months included: Delays in the payment chain as one of the main factors.
Source: Ambito
