Construction industry declined by 2.4% in 2nd quarter

 

Jamaica's construction industry declined by an estimated 2.4 per cent in the second quarter of this year.

 

Dr Wayne Henry, Director-General of the Planning Institute of Jamaica (PIOJ), says this was mainly due to a downturn in activities in both the "Building construction" and "Other construction" components in the group, for the April to June period.

 

He said preliminary data of sale of construction inputs indicated a 7?cline, "in real terms."

 

"The decline in the 'Other Construction' component was due to reduced capital expenditure on civil engineering activities, reflecting National Works Agency, down 72.2%, to $662.6 million, reflecting lower expenditure on the Harbour View to Yallahs leg of the Southern Coastal Highway Improvement Project and the Major Infrastructure Development Programme." 

 

He disclosed as well that the Jamaica Public Service Company disbursed $1.95 billion during this period, "representing a decline of 21 per cent."

 

Dr. Henry, speaking at a recent PIOJ press briefing, said a further decline was tempered by increased spending by the National Road Operating and Constructing Company (NROCC) of $5.9 billion, "representing an increase of $5.2 billion."

 

This, he said, was associated mainly with increased expenditure on the Montego Bay Perimeter Road.

 

He noted as well that the building construction component contracted by an estimated 7.6%, due mainly to a decline in housing starts by the National Housing Trust.