Last month, the business conditions felt by construction companies improved, but remained sluggish.
Korea Research Institute for Construction Policy (KRIHS) said on the 10th that the Construction Business Survey Index (CBSI) for Nov. rose 5.9 points from the previous month to 72.2. When the index is below the baseline of 100, it means more corporations view construction conditions pessimistically; when it is above 100, optimistic views prevail.
Research fellow Lee Ji-hye explained, "In November, perceived construction conditions rebounded, recouping part of the previous month's decline, but continued to fluctuate around the 70 level."
By institutional sector, the detailed index for work progress payments (92.7) climbed 19.2 points from the previous month, the biggest gain. It was followed by the index for accounts receivable on construction (85.4), up 8.5 points; the order backlog index (75.4), up 6.6 points; and the new orders index (69.7), up 5.7 points.
By work type, the new orders index for civil engineering (62.0) fell 3.6 points, while dwellings (74.7) and nonresidential building (70.6) rose 15.2 points and 5.7 points, respectively.
By company size, the large corporations index (85.7) fell 6.0 points, but the mid-sized corporations index (72.4) and small and medium-sized corporations index (58.5) rose 13.1 points and 10.4 points, respectively.
By region, the Seoul index (79.9) fell 4.9 points, while the non-capital regions index (67.6) rose 14.1 points.
The outlook index for Dec. was 72.9, only 0.7 points higher than this month's performance index.
Lee said, "Typically at year-end, new orders tend to increase as budget execution expands and business plans in the private institutional sector are finalized, which is expected to support a short-term improvement in the performance index," while also noting, "Structural constraints such as interest rates and construction costs still exist."