Compared to last year’s growth of 20.3 percent, this year is a different story for the construction sector. Instead of growing up, the sector just keeps falling down. In the first quarter of 2008, it had an 18 percent growth rate, but in the third quarter of 2008, the sector started to suffer a 12.8 percent decline.
With $2.3 billion from 2008’s second quarter, the latest contribution of the industrial sector to the real gross domestic product (GDP) went up to $2.3 billion in the third quarter.
MTI economist Wee Shu Lin noted in a recent report that the demand for construction may be expected to wane for global and local property markets, whilst the global recession is at stir.
In most countries’ economies, the global crisis has caused reduction to almost all industrial- and property-related market, such as the demand for commercial and industrial structures and the local private housing property prices and dealings.
According to the report, exclusive construction supplies, increased salaries for professionals and managers, and increased rental fees for construction tools were the major factors in motivating construction tender prices up and about in the last two years.
Now, input costs have been plummeting down and contracting competence eases in partnership with dawdling demand. However, construction tender prices are anticipated to become a lot more sensible in 2009.