Residential construction output plummeted by 25% in March

In Q1, the total construction output plummeted following a 0.6% slowdown in January–February. The construction output fell by 5.5% to ₴21.6 billion in January–March compared to the same period of 2019. Engineering and residential construction output decreased by 10.3% and 10.4% respectively, non-residential construction output increased by 7%, according to the State Statistics Service.

In March 2020, construction output decreased by 12.8% against March 2019. According to unadjusted data, the residential construction output dropped by 25%, engineering construction output by 12.4%. The output of non-residential construction increased by 1%.

The total construction output in January–March amounted to ₴21.6 billion, including residential construction — ₴6.2 billion, non-residential and engineering construction — ₴8.1 and ₴11.7 billion respectively. The cost of construction of facilities of steelmaking companies amounted to ₴700 million.

Expenses for new construction amounted to 46.7% of the total construction output, maintenance and overhaul repairs — 25.8%, reconstruction and technical re-equipment — 25.7%.

As reported earlier, Ukraine’s construction output in 2019 boosted by 20%. The highest trends in the segment were recorded in non-residential and engineering construction, an increase of 27.4% and 23.3% respectively. Residential construction grew by only 3%.

For more details on the situation in the construction sector in 2019 see GMK Center infographics.