Cost Pressures Persist Despite Moderation in the Construction Sector During the First Semester of 2023

According to the report on economic conditions prepared by the Chamber of Commerce, Industry, and Services during the first semester of 2023, 50% of companies are grappling with issues related to the supply of basic materials, while 48.4% are facing challenges stemming from delays and increased transportation costs. This situation has been a consistent concern, with business owners noting that the degree of impact has decreased by 19.2 percentage points compared to the previous edition of the survey.

In terms of business costs, 43.8% of construction companies express concerns about the rise in operating expenses, although this figure is slightly lower than the average recorded in 2022 (51%). Regarding construction, despite the sector maintaining solid growth during the first semester due to ongoing construction projects and demand for housing, the Chamber of Commerce points out signs of moderation in indicators such as Gross Value Added (GVA), job creation, and contracted projects.

The majority of businesses have been optimistic about the state of affairs, with 63% rating it as good, and no company providing a negative assessment, according to the survey. However, business outlooks suggest that the construction sector will experience a positive yet slowing momentum, especially throughout 2024, with a notable cooling in demand in the residential market. This will be exacerbated by the tightening of financial conditions and the impact of high inflation on household disposable income.

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