According to data sent on Monday by the National Institute of Statistics (INS), the construction sector fell for the first time in 4 consecutive months.

• The adjustment of around 2% comes amid a deteriorating climate in this capital- and labor-intensive sector, amid high levels of funding costs, uncertainty and challenges in public finances, Banca Transilvania analysis sent to investors shows.

• Capital repairs, new construction, and ongoing repairs in September adjusted for monthly rates of 1.8%, 2.2%, and 7.0%, respectively.

• This is the weakest trend since April, this trend is determined by a decrease in the volume of capital and current repairs, as well as a slowdown in new construction to 15.8% year/year.

• At the same time, the construction of non-residential buildings increased for the fourth month in a row in September, but with a softening of the annual pace to 1.3%.

• On the other hand, the construction of residential buildings in September was adjusted for the sixth month in a row with increased dynamics up to 11.5% y/y.

Revised forecasts (including data released by the INS today) project construction growth at an annual average rate of 12.06% in 2023, 8.79% in 2024 and 10.91% in 2025, BT’s analysis also shows.