Construction business index drops as temperature rises

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Construction business index drops as temperature rises

Korean builders' business sentiment sank below par in July from a month earlier due to a heat wave and a resurgence of the coronavirus, a poll showed Monday.
The construction business survey index (CBSI) came to 92.9 last month, down 7.9 points from the previous month, according to the survey by the Construction and Economy Research Institute of Korea.
July represents the first time in three months that the index has dropped below the benchmark 100.
A reading below 100 indicates that builders pessimistic about the current state of the construction industry outnumber those with optimistic views.
"With an unusual heat wave gripping the nation, the builder sentiment appears to have fallen in July due to growing jitters over the fourth wave of Covid-19 infections," Park Cheol-han, an associate research fellow at the institute, said.
Park said July's decline marks the largest on-month decrease since the 8.1-point tumble in July 2010.
The subindex for new construction orders stood at 104.7 in July, up 0.5 point from the prior month, with that for existing works rising 5.8 points to 102.3.
The survey also showed more construction companies being pessimistic about business conditions in August, with the CBSI outlook coming to 91.9.
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