Cyprus building construction tumbles in Q3

Latest data on output in construction confirm what has been indicated from building permits and cement sales, namely that the building construction sector is still in steep depression.
The production index for buildings recorded a decrease of 13.3% over the same period of the previous year in the third quarter of 2010, according to the Statistical Service.
By contrast, the production index for civil engineering rose by 16.8% int eh same period.
This sector is doubtless being helped by a range of roadbuilding and other projects, which are being undertaken partly to give the capital a facelift when Cyprus takes over the six-month rotating presidency of the EU in the second half of 2012.
Since building construction is larger than civil engineering the index for the whole construction sector showed a decline of 7.0% compared with the third quarter of 2009.
Meanwhile, output prices in construction increased by 0.1% compared with the second quarter of 2010 but fell by 2.4% compared with the same quarter of 2009.
Output prices for buildings recorded a decrease of 1.2% over the year earlier while output prices for Civil engineering recorded a decrease of 7.7%.

Fiona Mullen
www.sapientaeconomics.com