Sharp growth turnover construction sector in first three quarters of 2008

25/11/2008 15:00

Total construction turnover over the first three quarters of 2008 increased by 11 percent relative to the same period last year. Since the second quarter of 2005, the construction sector has seen a period of uninterrupted growth.

Turnover construction sector, moving four-quarterly average

Turnover construction sector, moving four-quarterly average

More working days due to milder weather conditions

In the third quarter of this year,  construction turnover grew 10.7 percent. Quarterly differences were marginal. With 12 percent, the highest growth was realised in the first quarter of 2008. Turnover growth in the first three quarters of 2008 was affected positively by the fact that the number of weather-related non-working days was minimised due to mild weather conditions.

Turnover construction sector, 2008

Turnover construction sector, 2008

12 percent turnover growth residential and non-residential building

Turnover in the largest subsector, residential and non-residential building (B&U), grew by 12 percent in the first nine months of 2008. Building costs also rose in this period. Total building costs for new dwellings, for instance, rose by nearly 5 percent over the period January–September 2008.

Building permits granted in recent years contributed to the B&U turnover growth. The number of residential building permits granted in the period January–August 2008 was nearly 2 percent down on the same period last year. This will affect future output in the construction sector. On the other hand, the number of non-residential building permits granted for office buildings, schools, etc. rose by 5 percent over the same period. 

Civil engineering (GWW) realised an 8 percent turnover growth in the first three quarters of 2008. B&U performed far better than GWW. Costs in GWW also increased by 8 percent, which means that volume growth came to a standstill. Specialised branches, like installers and plasterers achieved a turnover growth of 12 percent in the first three quarters.

Turnover growth for small, middle-sized and large businesses, 2008

Turnover growth for small, middle-sized and large businesses, 2008

Sharpest growth for small businesses

Small businesses accounted for the largest turnover growth (16 percent) in each quarter of 2008. With 10 percent, the growth rate was lower for middle-sized and large businesses.

Ingrid Zum Vörde Sive Vörding and Ron Duijkers