Rainy season pulls down private construction

Amid the rainy season and floods, private construction projects declined in July, with drops in total project count, floor area, and value compared to a month ago and a year ago levels, according to the latest preliminary data from the Philippine Statistics Authority (PSA).

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Private-sector economists expect this slowdown to linger for the rest of the third quarter, even as it would inflict only a small dent on overall economic growth.

The PSA last Friday, Sept. 19, reported an 8.5-percent year-on-year decrease in approved building permits, which serve as a proxy for private construction activities, in July. The total number of projects reached 15,395 that month, down from 16,821 in July 2024. This came after the sector posted a 14.9-percent annual growth rate in June, with 16,394 projects.

In terms of value, PSA data showed that private construction projects in July amounted to P44.54 billion, reflecting a 7.5-percent decline from P48.16 billion in the same period last year. In June, a bigger P58.89 billion worth of projects were granted with building permits.

As for floor area, the 3.47 million square meters (sqm) covered by building permits approved in July fell from 4.59 million sqm in June and 3.54 million sqm in July last year.