The seasonally-adjusted construction activity index in Romania edged down by 1.2% in July compared to June - but it remains close to the typical level achieved this year, which is nearly 5% above the last year’s average.

In July, the construction volume index rose by 6.7% YoY, driven up by the activity in the non-residential buildings segment (+18.1% y/y) - the most active this year compared to 2021.

For the whole January-July period, the construction volume index rose by 4.7% y/y, with the non-residential segment going up 16.3% YoY.

Notably, the profitability of the construction activity deteriorated significantly in the second quarter of the year, when the value added generated by the sector contracted by 1.1% YoY despite the 3.1% YoY advance of the activity volume index. In the first quarter of the year, the value added generated by the sector increased by 6.0% YoY - in line with the 6.3% YoY stronger activity.

The shrinking profitability will predictably impact the activity volume eventually.

iulian@romania-insider.com

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