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Construction output for Q2 2020

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The Census and Statistics Department (C&SD) released to the provisional results of the Quarterly Survey of Construction Output on 11 September 2020.

According to the release, the total gross value of construction works performed by main contractors in the second quarter of 2020 decreased by 0.5 per cent in nominal terms over a year earlier to HKD55.9 billion.

After discounting the effect of price changes, the provisional results showed that the total gross value of construction works performed by main contractors decreased by 0.6per cent in real terms over the same period.

Gross value of construction works in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the price level in the base period of 2000.

Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled HKD13.9 billion in the second quarter of 2020, down by 27.4 per cent in nominal terms over a year earlier. In real terms, it decreased by 26.1per cent.

The gross value of construction works performed at public sector sites increased by 14.6 per cent in nominal terms over a year earlier to HKD16.6 billion in the second quarter of 2020. In real terms, it increased by 14.4 per cent.

The gross value of construction works performed by main contractors at locations other than construction sites amounted to HKD25.4 billion in the second quarter of 2020, up by 12.5 per cent in nominal terms compared with a year earlier. In real terms, it increased by 11.8 per cent. Construction works at locations other than construction sites included minor new construction activities and decoration, repair and maintenance for buildings; and electrical equipment installation and maintenance works at locations other than construction sites.

Analysed by major end-use group, the gross value of construction works performed at construction sites in respect of residential buildings projects amounted to HKD12.0 billion in the second quarter of 2020, down by 27.2 per cent in nominal terms over a year earlier. Over the same period, the gross value of construction works performed at construction sites in respect of transport projects went up 46.6 per cent in nominal terms to HKD8.3 billion in the second quarter of 2020.

On a seasonally adjusted quarter-to-quarter basis, the gross value of construction works performed by main contractors increased by 0.7 per cent in nominal terms and increased by 2.1 per cent in real terms in the second quarter of 2020 compared with the first quarter of 2020.

Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time. The gross value of construction works performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor. However, subcontractors’ contribution to projects should have been included in the gross value of construction works performed by main contractors for whom they worked.

The classification of construction establishments follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.  — Construction+ Online