Hong Kong Construction Output Up In 2nd Qtr of 2014

Analysis, Slider 29 Oct 2014
Hong Kong Construction Output Up In 2nd Qtr of 2014

Value of construction works by main contractors up 13.6pc in 2nd quarter

The total gross value of construction works performed by main contractors in the second quarter of 2014 increased by 13.6% in nominal terms over a year earlier to $48.6 billion, according to the provisional results of the Quarterly Survey of Construction Output by the Census and Statistics Department (C&SD).

After discounting the effect of price changes, the total gross value of construction works performed by main contractors increased by 5.8% in real terms over the same period.

Gross value of construction works in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the price level in the base period of 2000.

Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled $12.3 billion in the second quarter of 2014, up by 1.0% in nominal terms over a year earlier. In real terms, it decreased by 9.3%.

The gross value of construction works performed at public sector sites increased by 6.6% in nominal terms over a year earlier to $15.7 billion in the second quarter of 2014. In real terms, it increased by 2.8%.

The gross value of construction works performed by main contractors at locations other than construction sites amounted to $20.6 billion in the second quarter of 2014, up by 29.7% in nominal terms over a year earlier. In real terms, it increased by 20.9%. Construction works at locations other than construction sites included minor new construction activities and decoration, repair and maintenance for buildings; and electrical equipment installation and maintenance works at locations other than construction sites.

As to the gross value of construction works performed at construction sites analysed by major end-use group, transport projects amounted to $10.4 billion in the second quarter of 2014, up by 6.6% in nominal terms over a year earlier. Over the same period, residential buildings projects increased by 9.4% in nominal terms to $10.3 billion in the second quarter of 2014.

On a seasonally adjusted quarter-to-quarter basis, the gross value of construction works performed by main contractors increased by 0.2% in nominal terms but decreased by 2.3% in real terms in the second quarter of 2014 compared with the first quarter of 2014.

Table 1 shows the gross value of construction works performed by main contractors in the second quarter of 2014 and Table 2 shows the revised figures for the first quarter of 2014.

Table 1

Gross value of construction works performed by main contractors in Q2 2014 #

Construction output for the second quarter of 2014

Table 2

Gross value of construction works performed by main contractors in Q1 2014 *

Construction output for the second quarter of 2014
Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time.

The gross value of construction works performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor.

However, sub-contractors’ contribution to projects should have been included in the gross value of construction works performed by main contractors for whom they worked.

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