Koniunktura w budownictwie. IV kwartał 2023 BADANIA KONIUNKTURY GOSPODARCZEJ INSTYTUTU ROZWOJU GOSPODARCZEGO SGH

Abstract

In the 4th quarter of 2023, the IRG SGH construction confidence indicator (IRGCON) has a negative value of -9.9 pts, lower by 5.4 pts than recorded in the previous quarter, but 3.4 pts up from the respective year 2022 figure. The current situation in the construction industry remains worse than before the COVID-19 pandemic (the three fourth quarters’ average of years 2017-2019 equals to -1.6 pts).
The indicator for the private sector quarterly declined by 4.1 pts, and for the public sector increased by 0.3 pts. In comparison with the 4th quarter of 2022, the indicator grew by 2.2 and 19.5 pts, respectively. Compared to the pre-pandemic period, the private sector indicator is lower by 8.9 pots, and the public sector one is slightly higher (by 0.3 pts).
On the quarterly basis, construction production, total orders and production capacity utilization decreased. Firms increased employment and investments. Their financial situation slightly worsened, together with their opinions about general situation of the economy.
According to the surveyed companies, barriers limiting construction activity diminished, compared to the 3rd quarter. Last quarter, the main barrier, namely high prices of raw materials and materials, was reported by 55.2% of respondents, and currently the percentage is 53.1%. The next two barriers that create serious problems for construction companies are: high tax burden (50.8% currently, 36% in the previous quarter) and unstable law (37.3% currently, 45.3% in the previous quarter).