Activity in the construction sector in Cyprus continues its decline in the first quarter of 2022, amid soaring prices, data released on Tuesday by the Statistical Service of Cyprus show.
In the first quarter of 2022 the Index of Production in Construction, considered an indication of the growth rate of construction relevant to a specific reference year, the base year, declined to 175.4 units (base year 2015=100,0), recording a decrease of 6.6% over the first quarter of 2021. The index marked annual losses for the third consecutive quarter.
By type of project, a decrease of 7.1% was observed for buildings and of 3.4% for civil engineering projects in the first quarter of 2022 compared to the corresponding quarter of 2021, Cystat said.
Prices continue to soar
Furthermore, according to Cystat, the Output Prices Index in Construction for the first quarter of 2022 rose to 124.90 units (base year 2015=100,00), recording a significant increase of 10.1% year on year compared with the previous quarter (fourth quarter of 2021) when the index rose by 3%.
According to the Cystat data, the index has been rising for a fifth consecutive quarter.
By type of project, an increase of 11.7% was observed for buildings and 4.8% for civil engineering projects in the first quarter of 2022 compared to the corresponding quarter of 2021.
The index shows the change in the overall cost of construction work incurred to the client, including costs coming from the materials used, labor, energy, transport, etc, as well as the profit made by the contractors and can be seen as an indication of inflation’s level in Construction compared to a specific reference year, the base year, Cystat added.