The business confidence indicator in the construction market of Ukraine in the first quarter of 2019 increased by 4.8 percentage points (p.p.) compared to the fourth quarter of 2018, to minus 12.5%. According to the poll of construction companies by the State Statistics Service, the assessment of a shortage of the current volume of orders fell by 10 p.p., to minus 30%.
According to the results of the survey, 32% of companies rated their current order volume as insufficient, 65% as normal for the season and only 2% as exceeding the norm.
Some 44% of respondents expect an increase in prices for their services in the first quarter of this year, which is 1 p.p. more than in the fourth quarter of 2018, while 2% of the companies surveyed predict a decrease in the cost of construction work, and 54% do not expect any changes in the price policy.
According to the service, companies participating in the survey are provided with orders for an average of five months, which corresponds to the indicators of 2018.
The service said in the first quarter unfavorable weather conditions will more affect the work of construction companies, and 39% of respondents will continue to experience financial constraints. In addition, 20% of companies will be constrained by an insufficient demand, 18% by a shortage of workforce.
Some 20% of the companies surveyed expect a reduction in the number of their employees in January-March 2019, while 16% predict an increase in the number of employees.