Construction Business Index in December at 92.1... Favorable Trend for Two Consecutive Months

Construction Companies Business Survey Index (CBSI) Trend ＜Source: Korea Construction Industry Research Institute＞

The Construction Business Survey Index (CBSI) for December showed a slight increase compared to the previous month due to seasonal favorable factors, maintaining a positive trend for two consecutive months.

According to the Korea Construction Industry Research Institute (KCON) on the 30th, the December CBSI recorded 92.1, up 4.1 points from the previous month. After a drop of 11.0 points in October, the CBSI recovered by rising 4.5 points in November. In December, it rose another 4.1 points, showing a favorable trend for two consecutive months.

If the CBSI falls below the baseline of 100, it means that more companies view the current construction business situation pessimistically than optimistically; if it exceeds 100, the opposite is true.

Researcher Park Cheol-han of KCON said, "It is common for the index to rise by about 2 to 7 points in December due to the seasonal increase in year-end construction volume," adding, "This appears to reflect such seasonal effects."

Researcher Park added, "The index seems to have recovered due to active year-end construction orders," and "In particular, civil engineering construction orders in provincial areas were vigorous."

In fact, the BSI for new construction projects, construction work progress, and order backlog all rose compared to the previous month. Regionally, Seoul decreased compared to the previous month, but provincial areas rose by more than 10 points. This is interpreted as active civil engineering facility construction orders being carried out in the provinces.

Meanwhile, the CBSI for January next year is forecasted to fall 2.4 points from the previous month to 90.1. Researcher Park said, "It is common for the CBSI to decline in January due to the seasonal effect of decreased construction orders compared to the end of the previous year," adding, "This effect is reflected in the index."

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