Swiss construction industry with increase in orders in the third quarter
Published: Wednesday, Nov 29th 2023, 09:40
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After two quarters of decline, Swiss construction companies have landed more orders again in the third quarter of the year. Incoming orders increased by 4.1 percent to 5.7 billion Swiss francs.
Orders were still down significantly in the first and second quarters, meaning that the year-on-year decline for the first nine months is now 4.6 percent, as announced by the Swiss Federation of Master Builders (SBV) on Wednesday.
Meanwhile, construction activity also increased in the third quarter, rising by 1.7 percent to 6.3 billion Swiss francs. At 15.5 billion, the order backlog was 1.5 percent higher than the previous year and covers an average of eight months. This provides a certain safety cushion, the report continues.
From this quarter, the Federation of Master Builders will now also take over the construction index, which was previously produced jointly with Credit Suisse. According to this index, an increase in turnover of 1.5 percent is expected for the fourth quarter compared to the same quarter of the previous year. Construction activity for the year as a whole will therefore amount to a nominal CHF 23.3 billion, which is a "good level similar to the previous year", according to the association.
In 2024, turnover is likely to decrease slightly. In addition to a persistently high price level, higher interest rates are also making construction costs more expensive. The Federation of Master Builders is still expecting a small interest rate hike in December 2023, but no further increases in the coming year.
©Keystone/SDA
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