Construction Plunge Reaches 17 Consecutive Months

 

The production value of construction companies dropped 10.5 percent during November compared to the same month in 2018, according to INEGI’s National Survey of Construction Companies. The pattern of value loss now extends for 17 consecutive months, the longest since the 2012-2014 period when it plummeted for 20 months.

Reduced public expenditure in infrastructure projects and distrust by the private sector are the main reasons behind the poor results say analysts.

INEGI detailed that production value of works contracted by the public sector fell 23.5 percent annually in November, while private sector’s works decreased only 0.6 percent.

November’s result recorded the biggest setback since last July’s 8.69 percent drop. From January to November the construction company’s indicator recorded an accumulated decline of 7.7 percent, the biggest fall since data began to be available, in 2007.

Building projects dropped 8.3 percent compared to the same period of 2018. Civil engineering fell 5.1 percent and specialized construction plunged 15.2 percent, INEGI detailed.

Production value accounts for all constructions carried out by a company, its sale price and the progress of its projects.

The same report noted that in Mexico City the production value dropped 8.4 during November, the smallest decline in four months. INEGI reported that 61.9 percent of the projects carried out in Mexico’s capital city were private.