According to the latest official statistical data in Croatia, the decrease of output by the construction industry continues.
After a 7.5-percent slowdown in September, a fall by 7.4 per cent was seen in October 2011, y/y. Since there was only a slight decrease in the negative trend, it is not possible yet to speak of a turn, since the first ten months of 2011 saw an average fall by 9.4 per cent y/y. The relatively sharp decrease month-on-month was a result of unfavourable weather conditions in the colder part of the year.
Negative trends also maintain in the real estate market, and this contributes further to negative physical indicators in construction. Sales of apartments have been stagnant, as there are no buyers for the existing homes, nor is there demand to build new ones. In line with this, the number of building approvals issued in the first ten months of 2011 decreased by 3.9 per cent y/y.
Author/Source PressCut – (RBA Analysts)