The construction materials market value inched up marginally by approximately 1% y/y to around EUR 3bn in 2012, even though initial projections were more optimistic.
The building materials sector recorded encouraging performance in H1/2012, but in H2 the situation deteriorated. The public spending before the June local elections drove upwards the construction (and construction materials) market, however the Jul-Aug political turmoil virtually froze all investments in the sector. Subsequently, the government’s decision to pay a part of the state arrears to construction companies helped to improve the sector’s liquidity, but at the same time cut financing for infrastructure projects.
The construction materials sales were also negatively impacted by the draughty summer season and poor agricultural output. Traditionally, the sales of construction materials increase in September and October, as rural area inhabitants spend the amounts from selling crops for refurbishing of homes or even for new constructions, but in 2012 the construction material sales did not follow this seasonal pattern.
Figure 1 Construction works index in 2005-2013 (monthly, y/y)
This is just a quick glimpse into the Intellinews Report: Intellinews Romania Construction Materials
Filed under: Construction, Europe, Romania
