Construction Market Recovery Phase Begins... April CBSI Hits Near 6-Year High

Construction Business Survey Index at 97.2... May Forecast at 109.2

Comprehensive Construction Business Survey Index (CBSI) Trends

Analysis results indicate that the construction industry, which had been sluggish due to the impact of COVID-19, appears to have entered the early stage of a recovery phase.

The Korea Construction Industry Research Institute announced on the 3rd that "the Construction Business Survey Index (CBSI) for April rose 4.0 points from the previous month to 97.2."

The CBSI indicates that when the index is below the baseline of 100, more companies view the current construction market pessimistically than optimistically, and when it exceeds 100, the opposite is true.

Although the CBSI showed a sluggish trend until February this year, it rebounded by 12.4 points in March. It then rose by 4.0 points in April, marking the most favorable figure in 5 years and 9 months since recording 101.3 in July 2015.

In particular, it is analyzed that new construction orders increased compared to the previous month, and the progress situation also improved from the previous month, positively influencing the index.

Considering the index level, the construction market is analyzed to have entered the early stage of recovery, but it is evaluated that future trends need to be monitored further.

Researcher Park Cheol-han explained, "In April, construction work typically increases, causing the index to rise about 3 to 4 points compared to the previous month," adding, "This is analyzed as a reflection of such seasonal factors."

Meanwhile, the index forecast for May 2021 rose 12.0 points from the previous month to 109.2, suggesting that the construction market is expected to recover further.

Researcher Park said, "The forecast for the next month is more than 10 points higher than the actual performance," and added, "This indicates that the market situation is expected to improve in May."

This content was produced with the assistance of AI translation services.