Construction activities doubled

Construction activities doubled
  • 2020-06-09
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The amount of production activities or construction services has more than doubled compared to the previous month.

According to the International Exhibition of Iranian Stone, due to the unprecedented recession of construction activities in April and the resumption of activities in May, the index of "the amount of activities performed (production or provision of services)" compared to the previous month increased significantly. And this component has been the highest value of the index among the five main components of Shamkh.

It is worth mentioning that other indicators among the five main components of Shamkh also experienced a favorable improvement.

According to the International Standard for Classification of All Economic Activities (ISIC), the construction industry is divided into three main groups: building construction, civil engineering, and specialized building construction activities. In another division, the building section consists of two general residential and non-residential sections (commercial and civil).

Statistical studies showed that in the residential sector, along with the opening of real estate offices, the relative control of the prevalence of coronavirus and the increase in face-to-face visits to buy housing in May, the number of housing transactions increased significantly, according to the Central Bank. Compared to the previous month, it increased by eight hundred and nine percent. Also, housing prices in Tehran (for example, a large statistic from the whole country) experienced a monthly inflation of eleven percent. Factors such as general inflation, inflationary expectations following the rise in the exchange rate, as well as the increase in speculative transactions, caused a significant increase in housing prices.

In the manufacturing sector, construction equipment was affected by currency fluctuations, the persistence of problems in the field of importing raw materials and the closure of border crossings, production activities and services, although increased on a monthly basis, but decreased sharply compared to the same period last year.

In the construction sector, following the government's decisions to increase the budget of the construction sector in the coming months, it is not far-fetched to expect the prosperity of construction activities in the coming months.

According to the explanations provided, the total number of Shamkhs increased significantly compared to the previous month, to the number of sixty-five; This is because the amount of production activity or construction services has more than doubled compared to the previous month, when a large part of construction activities were closed. The number of new orders also increased. So more raw materials were bought. The use of manpower also increased by more than 20 percent. As a result of the above factors, the amount of overdue and unfinished work decreased by more than thirty-two percent. The price of raw materials has been on the rise in most items, and according to activists, it has grown by 20 percent. However, the prices of products and services rose slightly less than the price of raw materials by about seventeen percent.

Due to the increase in demand and the completion of overdue orders from previous months, sales increased more than two and a half times compared to the previous month. Due to the increase in the volume of activities and the start of many construction jobs, the consumption of energy carriers increased. The export index of goods and services increased compared to the previous month.

According to these statistics, the main internal obstacles facing the activists in this field include the intensification of customs laws governing the registration of orders and the clearance of imported goods required by the manufacturing sector, the instability of laws and regulations and the lengthy process of obtaining licenses by executive bodies. The continuing rise in raw material prices, exchange rate fluctuations and the resulting difficulty in delivering previous contracts are still some of the most important internal problems in the construction business space.