Chilean construction fell 2.1 percent in January

The Chilean Construction Bureau announced Friday that the country's construction activity decreased 2.1 percent in January from a year ago. Since October 2008, a radical slowdown in the Chilean construction industry was witnessed even though a 13 percent growth increase was registered at the time. It wasn't until December of 2008 that the negative numbers started to emerge, explained the Chilean Construction Bureau’s president Lorenzo Constans.

The group's report indicates that in January 2009 there were scarce construction projects in Chile. The number of building permits decreased by 30.2 percent, due to decreased residential construction mostly, in the metropolitan areas, transportation of materials shrunk 19 percent, and supplier sales fell 13.7 percent, all compared to figures recorded in January 2008. Material deliveries and supplier sales are expected to continue falling in the coming months.

The Chilean Construction Bureau expects February figures to continue showing a decreasing trend; more specifically, they expect a drop ranging from 2.4 to 4.9 percent.

This estimated slump is justified by a decreased demand for concrete and construction materials as well as for the forecasted drop of 1.1 percent in economic activity in February according to results an economic survey released by the Central Bank.