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Construction sector shrank 3.4 per cent in 2018

Singapore’s construction sector shrank 3.4 per cent in 2018, a more gradual pace of decline than the 10.2 per cent decrease in 2017, according to the Ministry of Trade and Industry (MTI).

The sector’s output was weighed down by a decline in public sector construction works, even as private sector construction works rose marginally.

In the fourth quarter of 2018, the construction sector contracted by 1 per cent year-on-year, compared to the 2.3 per cent contraction in the third quarter. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector grew by 5.1 per cent, faster than the 0.7 per cent in the third quarter.

After three consecutive years of contraction, there may finally be light at the end of the tunnel. The construction sector is tipped to see a turnaround following the pickup in contracts awarded since the second half of 2017, which should translate into construction activities in the quarters ahead.

As a whole, Singapore’s economy as a whole grew by 3.2 per cent in 2018, compared with 3.9 per cent in 2017. — Construction+ Online