*************************************************
The total gross value of construction works performed by main contractors decreased by 0.5% in nominal terms from a year earlier to $24.0 billion in the first quarter of 2009, according to the provisional results of the Quarterly Survey of Construction Output released today (June 11) by the Census and Statistics Department (C&SD).
After discounting price changes, the total gross value of construction works performed by main contractors decreased by 8.0% 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 2000.
Analysed by type of construction works, the gross value of construction works performed at private sector sites totalled $8.0 billion in the first quarter of 2009, down by 4.1% in nominal terms from a year earlier. In real terms, it decreased by 14.7%. The decrease was mainly due to completion of works at some commercial building sites.
The gross value of construction works performed at public sector sites increased by 7.3% in nominal terms from a year earlier to $4.1 billion in the first quarter of 2009. In real terms, it decreased by 3.3%.
On the other hand, the gross value of construction works performed by contractors at locations other than construction sites amounted to $11.8 billion in the first quarter of 2009, down by 0.4% in nominal terms over a year earlier. In real terms, there was a 4.5% decrease. 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 end-use group, residential building projects accounted for the largest share in the gross value of construction works performed at construction sites in the first quarter of 2009. The gross value of construction works performed for these projects amounted to $5.2 billion, up by 13.5% in nominal terms from a year earlier.
Commercial building projects constituted the second largest category of construction site works. The gross value of construction works performed for these projects totalled $2.1 billion, down by 30.0% in nominal terms from a year earlier.
On a seasonally adjusted basis, the gross value of construction works performed by main contractors decreased by 4.8% in nominal terms or decreased by 6.4% in real terms in the first quarter of 2009 compared with the fourth quarter of 2008.
Table 1 shows the gross value of construction works performed by main contractors in the first quarter of 2009. Tables 2 and 3 show the revised figures for the whole year of 2008 and the fourth quarter of 2008 respectively.
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, sub-contractors' 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 (HSIC), which is used in various economic surveys for classifying economic units into different industry classes. Upon the implementation of the new HSIC Version 2.0 by the C&SD in October 2008, the Quarterly Survey of Construction Output has adopted the HSIC Version 2.0 in compiling the construction output statistics. However, the changeover does not have any significant effect on the classification for compiling the construction output statistics. The construction output statistics compiled based on the HSIC Version 2.0 as from the first quarter of 2009 are thus comparable with the data series prior to 2009.
More detailed statistics are given in the "Report on the Quarterly Survey of Construction Output, 1st Quarter 2009". Users can download this publication free of charge at the website of the Census and Statistics Department (C&SD) (www.censtatd.gov.hk/products_and_services/products/publications/statistical_report/commerce_and_industry/index.jsp).
For enquiries about the survey results, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD (Telephone: 2805 6426 or email: building@censtatd.gov.hk).
Ends/Thursday, June 11, 2009
Issued at HKT 16:31
NNNN
