In the 4th quarter of 2024 the construction confidence indicator (CCI) decreased by 12.7 pts to 2.0 pts. It is now higher than one year ago by 11.9 pts, and 3.6 pts up from the mean for the third quarters of the three years preceding the COVID-19 pandemic. Usually, in the fourth quarters construction activity slows down, which emanates a decline in orders, production, capacity utilization and employment. It was no different this year. The balance of production dropped by 16.3 pts quarterly, and the balance of expected employment fell by 15.4 pts (in comparison with the balance of current employment). The balances of total orders and capacity utilization decreased by 13.2 pts and 15.9 pts (quarter-over-quarter), respectively. A rise in labor costs effected in an increase in selling prices. Financial situation of construction firms deteriorated. They negatively assessed current economic situation in the country and in the construction industry. Their expectations concerning their business prospects over the next quarter are rather pessimistic.
Researches
Konrad Walczyk, kwalcz1@sgh.waw.pl
Ewa Ratuszny, eratus@sgh.waw.pl