Construction PMI recorded a Total Activity Index value of 44.3 in September 2023, indicating the continued contraction in constructon activities. In addition to the continuous decline in project work, the persistent rain that prevailed during the month dampened the progress of the available construction activities as well.
New Orders continued to decline, yet at a slower pace in September. Many respondents mentioned that although the tendering opportunities are gradually opening up, especially for some foreign-funded projects, the bid prices are highly competitive. Meanwhile, Employment remained contracted since most of the companies prefer to operate with the essential staff. Further, Quantity of Purchases declined during the month, in line with the decrease in construction work. In the meantime, Suppliers’ Delivery Time remained shortened during the month, mainly due to the lack of demand.
The expectations for the next three months remained positive, mainly owing to the ongoing tender processes and positive developments in the recommencement of certain suspended government-funded projects. However, the companies are concerned about the upward tendency in energy-related expenses and unfavourable weather conditions.