Sluggish construction sector gets much-needed boost from public infrastructure spending

Singapore 05 Jan 2015
Sluggish construction sector gets much-needed boost from public infrastructure spending

The lacklustre construction sector was saved by aggressive spending on public infrastructure in the fourth quarter.

The construction sector registered a surprising 8% quarter-on-quarter growth in Q4, following a sluggish 0.1% performance in the third quarter.

According to DBS, the upside blip can be traced to a jump in public infrastructure spending. However, the .
cooling property market, labour crunch and margin compression will continue to hinder growth and momentum in this sector.

Large public infrastructure projects include a number of new rail projects, as well as the 700-bed Ng Teng Fong General Hospital.

The construction sector is forecasted to register a 3% growth for the full-year 2014, down from the 6.1% growth that it posted in 2013.

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