Private construction projects up 11.2% in Q2

MANILA, Philippines - The number of new private construction projects were up 11.2 percent in the second quarter from a year ago, the National Statistics Office (NSO) reported yesterday.

Preliminary results of the NSOs construction statistics for the April to June period showed the number of new construction projects from approved building permits nationwide reached 30,614, higher than the 27,525 in the same quarter last year.

The NSO said the aggregate value of construction projects during the quarter also rose 9.4 percent to P60.9 billion from P55.7 billion in the same period last year.

University of the Philippines economist Benjamin Diokno said in an e-mail that while the number of building permits may have risen in the second quarter, it is not surprising private construction as measured in the national accounts was flat in nominal terms and down 2.6 percent in real terms since the acquisition of building permits is just the first step toward actual construction.

Some projects may have been delayed, downsized, or will be completed later in the year, he said.

He also said the rise in the number of building permits in the second quarter from last year may be seen as catching up with private constructions lackluster performance last year.

On a full-year basis, the number of approved building permits were down slightly to 112,881 last year from 113,230 in 2010.

The NSO said residential-type building projects climbed 10.6 percent to 21,118 in the second quarter compared to the previous year.

These projects were valued at P27.5 billion, an 18.2 percent increase from the same period last year.

The number of non-residential construction projects likewise grew 15.5 percent to 3,937 from 3,409 during the same quarter of 2011

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Private construction projects up 11.2% in Q2