Cyprus construction output slips in the third quarter

Output of construction slipped year on year in the third quarter of 2006, recording a decline of 1.1% compared with the same period of 2005.

However, for the first three quarters of the year, output was up by 3.7% compared with the same period of 2005. Buildings rose by 2.6% and civil engineering projects rose by 7.9% in that period.

The main reason for the decline in the third quarter was a fall in the production index for civil engineering projects, which dropped by a dramatic 17.3% compared with the same period of 2005.

This may be a reflection of the fact that the intensive phase of the rebuilding of the Limassol by-pass appears to have passed. Civil engineering will no doubt pick up again as the upgrading of the airports continues.

The Statistical Service also announced that the index of output prices for construction rose by 2% compared with the previous quarter in the third quarter of 2006. Compared to the same quarter of the previous year year, the index recorded an increase of 9.7%, while for the period January-September 2006, there was an increase of 9.6%.