Construction permits down in August

New construction projects declined in August as the number of approved building permits went down by two percent from a year ago amid rising costs of materials and unfavorable weather conditions.

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Preliminary data released by the Philippine Statistics Authority (PSA) showed that the number of construction projects from approved building permits decreased to 14,340 in August from 14,627 in the same month last year.

While the number of approved construction projects went down, the value of these projects increased by 14 percent to P58.66 billion in August from P51.38 billion in the same month a year ago.

Philippine Institute for Development Studies senior research fellow John Paolo Rivera said in an email that the decline in approved building permits “likely reflects a confluence of headwinds such as rising material and labor costs, tighter financing and higher borrowing rates and the aftereffects of major weather disruptions and election-related spending slowdowns.”