Hong Kong: Construction output for the third quarter of 2014

Hong Kong: Construction output for the third quarter of 2014

The total gross value of construction works performed by main contractors in the third quarter of 2014 increased by 15.0% in nominal terms over a year earlier to $47.9 billion, according to the provisional results of the Quarterly Survey of Construction Output released today (December 12) 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 9.5% 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 $13.1 billion in the third quarter of 2014, up by 10.6% in nominal terms over a year earlier. In real terms, it increased by 1.7%.

The gross value of construction works performed at public sector sites increased by 18.4% in nominal terms over a year earlier to $16.3 billion in the third quarter of 2014. In real terms, it increased by 13.9%.

The gross value of construction works performed by main contractors at locations other than construction sites amounted to $18.5 billion in the third quarter of 2014, up by 15.3% in nominal terms over a year earlier. In real terms, it increased by 11.1%. 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, residential buildings projects amounted to $10.9 billion in the third quarter of 2014, up by 20.1% in nominal terms over a year earlier. Over the same period, transport projects increased by 16.5% in nominal terms to $10.6 billion in the third quarter of 2014.

On a seasonally adjusted quarter-to-quarter basis, the gross value of construction works performed by main contractors increased by 1.2% in nominal terms and 3.6% in real terms in the third quarter of 2014 compared with the second quarter of 2014.

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

The classification of construction establishments follows the Hong Kong Standard Industrial Classification (HSIC) Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.

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