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.