Construction sector continues to expand due to new projects

utlook in the next three months remains positive as many expect an increase in the availability of new and bigger projects.

The construction sector activities have extended its months-long expansion through May, despite holiday-caused decline in April, as new projects are coming back online amid improving fiscal space and overall economic conditions.

The construction sector Purchasing Managers’ Index (PMI) for May recorded an index value of 54.5 compared to 31.9 in April and 55.9 index points in March.

The May index could be even higher if the construction activities weren’t damped by the adverse weather.
Meanwhile, industry stakeholders said road construction projects are the most available large scale tenders at present, a sign that the infrastructure development is resuming with the improvement in fiscal condition and the availability of the funds from the multilateral lenders.

Last week’s conclusion of the bilateral debt could also open up access to this type of debt, making more money available for larger projects.

In fact the construction sector participants emphasised the need for sizable infrastructure projects to stimulate the construction industry.

The first quarter gross domestic product data also showed that the sector had logged in a robust 14.2 percent growth in the three months, picking up from the 4.0 percent growth in the final quarter of 2023.

Despite the continued expansion, the sector has been a bit cautious on hiring new people.

Meanwhile the prices of construction related materials have also continued to ease through May which is going to be conducive for the industry.

The outlook for the sector in the next three months remains positive as many expect an increase in the availability of new and bigger projects.