The first nine months of the year were poor for construction companies listed on the Stock Exchange, which saw a nearly 20% turnover decline. Producers of construction materials were not spared, either, with their turnovers down by around 4%.
Overall, the business of Stock Exchange-listed construction
companies slipped by 11.4%, to 732 million RON (173 million euros),
while the cumulated net results amount to a 1.52 million-RON
(360,000-euro) net loss, compared with a 23 million-RON cumulated
profit in the similar period of 2009.
The declines come after business in the sector saw a major
contraction, by nearly 40%, with most companies budgeting revenue
increases at the beginning of the year, expecting a rebound in
orders.
The rebound did not, however, occur, with turnovers of construction
companies pursuing their decline amid a drop in state
infrastructure works and lessened purchasing power as a result of
the austerity measures taken by the Government.
The construction sector has therefore recorded the biggest slump
out of the major GDP components, with the gross added value in the
construction sector down by 13.3% in the first nine months of the
year against the similar period of 2009, according to data
published on Thursday by the National Statistics Institute
(INS).