Construction sector activities continued to plough ahead through August 2024, though some slowdown was seen during the month. 

This was due to some sluggishness experienced in awarding projects as some moderation in activity levels took hold as the Presidential election neared.

The Purchasing Managers’ Index (PMI), dedicated to assess the construction sector activity, recorded an index value of 51.4 in August, signalling expansion in the sector activity levels.

This is in comparison to the 62.9 index points recorded in the index in July, a significantly higher level reached in many years.

In PMI, an activity is split between an expansion and a contraction at the index value of 50.0. An index value of over 50.0 signals an expansion while a value below indicates a contraction. An index value of 50.0 shows a neutral level in the activity from a month ago.

In August, new projects have stayed at the previous month’s levels as many respondents from the industry have experienced some sluggishness in awarding new projects.

From around the beginning of the year through July, the sector saw some heightened activity due to the projects both new and halted but resumed from the funds received from the multilateral agencies.

Meanwhile, the employment sub-index had continued to remain in contraction in August signalling that the sector hasn’t begun re-hiring more meaningfully.

Construction has been a major employer during the post-war boom in the economy, generating hundreds of thousands of new jobs created to rebuild the country to what it is today.

During the first half of the year, the sector grew by a robust 14.8 percent, the second quarter Gross Domestic Product data showed. The sector accounts for a sizable 7.6 percent of the economy.  

Further, the quantity of purchases fell into contraction as many firms had turned cautious with their buying decisions due to gradual decline in material prices and expectations of moderate activity levels ahead of the Presidential election.

Suppliers’ delivery times also lengthened at a slower pace.

It is expected that the sector would continue to expand, potentially at a higher pace than in August due to the expected loosening in the government purse strings.