Construction is negative again: it fell 3.3% in June, estimates Capeco

Although in May, for the second consecutive month, the construction sector registered a significant growth of 5.5%, according to the Central Reserve Bank of Peru (BCRP), the Peruvian Chamber of Construction (Capeco) predicts that in June there would have been a fall of 3.3%, caused mainly by the low consumption of cement (-5.9%) and the abysmal drop in the progress of public works.

“Cement consumption has been negative for a long time. In the last two years, that is, in 24 months, there has only been growth in three and these three have occurred this year,” emphasizes Guido Valdivia, director of Capeco. However, he adds that This first semester, the sectoral GDP would close in positive territory, with 4%meaning a recovery of 13 percentage points, compared to the same period last year, where it closed at -9%.

As for progress in public works, these have slowed down, going from 33% in May to 4.4% in June, according to estimates by the union. This would have a significant impact on the 3.3% drop expected for the last month of the first half of the year. Valdivia assures that the decrease in public works would be a response to the 15.2% in June 2023 and a statistical consequence.

“In April and June, where lower growth rates are reported in terms of progress in public works, it can be seen that in the previous months there are important results. So, There is a statistical effect that reduces the possibilities of growth in public works“, Explain.

Meanwhile, the private sector remains weak. The Peruvian Institute of Economics (IPE) highlights that private investment will only grow by 1% in the first half of the year. Along these lines, it should grow by 3.5% between July and December to meet the BCRP’s target for the end of this year.