The Construction Business Survey Index (CBSI), which had risen for three consecutive months, reversed and declined in June.
On the 5th, the Korea Construction Industry Research Institute (KICRI) announced that "the CBSI for June recorded 100.8, down 5.5 points from the previous month."
The CBSI showed an upward trend for three consecutive months from March to May. In particular, in May, it reached 106.3, the highest level in 18 years and 11 months since June 2002 (113.4). Although it showed a slight slowdown in June, the construction industry is generally evaluated to be in a favorable condition.
If the CBSI falls below the baseline of 100, it means that more companies view the current construction business situation pessimistically than optimistically; if it exceeds 100, the opposite is true.
Park Cheol-han, a research fellow at KICRI, said, "Although the CBSI fell by 5.5 points compared to the previous month, the index is still above the baseline of 100, indicating a favorable business condition." He added, "It is judged that the conditions for new construction projects, financing, and construction receivables are better than the previous month."
The CBSI for July is forecasted to rise 6.6 points from June to 107.4. Considering that the index usually declines in July due to a decrease in summer construction projects, this forecast is somewhat unusual.
Research fellow Park explained, "This reflects high expectations for the recovery of the construction industry," adding, "It is because positive expectations for the future business conditions have been factored in."
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