Business expectations in Ukrainian construction market in Q2 decrease by 1.1 pp – statistics

The indicator of business confidence in the Ukrainian construction market for the second quarter of 2024 decreased by 1.1 percentage points (p.p.) compared to the first quarter, to 40.9% less, the State Statistics Service of Ukraine said.

At the same time, according to the department, the indicator of business expectations for the second quarter of last year was 50.3% less.

According to a survey of construction industry companies conducted by the department, the assessment of the shortage of the current volume of orders improved by 4 percentage points, up to 51% less. Thus, 54% of the surveyed companies rated their current volume of orders as insufficient, 45% some as normal for the season.

According to the results of the second quarter of this year, 49% of respondents expect an increase in prices for their services. A reduction in the cost of construction work is predicted by 5% of surveyed companies, and 46% do not expect any changes in pricing policy.

According to the State Statistics Service, the companies participating in the survey are provided with orders for an average of five months, which corresponds to the figure for the first quarter.

The statistical agency said in the second quarter of 2024, construction will be negatively affected by financial restrictions (about 48%), labor shortage (47%), insufficient demand (28%) and other factors (48%).

Some 33% of surveyed companies expect a reduction in the number of employees in April-June, while 58% believe that their number will remain the same, and 9% will increase.

According to the State Statistics Service, some 25% of respondents noted an increase in the volume of construction work completed in the last quarter, some 42% reported a decrease in volumes.

The survey showed that 98% of companies find it difficult to predict the future development of the business situation at their enterprises.

Statistical data are given without taking into account the territories temporarily occupied by Russia and parts of the territories where military operations are (were) ongoing.