Construction growth to slump after exceptional Q1 growth

Singapore 29 May 2015
Construction growth to slump after exceptional Q1 growth

Private residential projects are starting to decrease.

The robust expansion in the construction sector is expected to taper off in coming quarters, a report by Standard Chartered revealed.

The construction sector grew 3.1% year-on-year in the first quarter, from 0.7% in the fourth quarter of 2014. On a quarter-on-quarter basis, the sector grew at an annualised rate of 12.9%, significantly faster than the 2.2% growth in the preceding quarter.

Construction growth to slump after exceptional Q1 growth

Construction growth to slump after exceptional Q1 growth

Although the pickup in construction activity provided a modest upside to growth, StanChart cautions that the boom will not last.

“Construction growth, a large component of investment, may also slow in the coming quarters. Planned development is decreasing faster than current construction, particularly in the private residential sector,” he said.

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