Construction sector in the cellar as demand for new investments slumps

The Central Statistical Office (GUS) said the construction industry recorded only 0.6% growth over first six months of 2000. July saw a drop of 4.7% compared to June and 3% compared to last year. Companies doing finishing work were the only ones to record growth (23%). The reason for the stagnation was a decrease in demand of new investments and renovations, which account for over 70% of the whole market. Investments showed only a 4% increase in the first half of 2000. European Construction Research, which specializes in analyzing the European real-estate market, forecasts that apartment construction should be the most dynamically developing in the construction market. GUS said 700,000 apartments were under construction by the end of June, which is an increase of 60,000 compared to last year. (Gazeta Wyborcza, Aug. 26-27, page 28)