"Improvement in Housing Orders Compared to Previous Month" October Construction Business Index Rises, Approaching 80 Threshold

[Asia Economy Reporter Kim Yuri] Last month, the Construction Business Survey Index (CBSI) for construction companies slightly increased compared to the previous month, approaching the 80-point mark. This is analyzed to be the result of improved housing orders compared to the previous month, despite sluggish civil engineering and non-residential building orders.

According to the Korea Construction Industry Research Institute on the 5th, the CBSI for October recorded 79.9, up 4.6 points from the previous month. The CBSI had recovered close to the 80-point level in June but fell back to the low 70s due to the prolonged rainy season in July and August. Afterwards, the institute explained that the index slightly rose by 1.8 points in September and increased by 4.6 points in October, reaching 79.9, close to the long-term average.

Park Cheolhan, a senior researcher at the institute, said, "Although civil engineering and non-residential sectors were sluggish, housing orders improved, and the previously poor progress situation also got better, leading to the index increase." He added, "In October, the index slightly rose due to the improvement in autumn orders and construction volume, reflecting seasonal effects. In particular, the improvement in housing orders had a decisive impact on the index recovery."

Meanwhile, the index for November is forecasted to rise 11.4 points from October to 91.3. Senior researcher Park stated, "The forecast of the index rising by more than 10 points reflects expectations that the economic recession situation will improve accordingly, and as the year-end approaches, there is anticipation of increased public construction orders to stimulate the economy."

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