S. Korean builder sentiment rebounds in September

Published : Oct 1, 2021 - 16:00 Updated : Oct 1, 2021 - 16:00

This undated file photo shows an apartment construction site in Seoul. (Yonhap)

South Korea's construction business sentiment bounced back in August from a month earlier due largely to seasonal factors, a poll showed Friday.

The construction business survey index (CBSI) came to 94.9 last month, up 5.5 points from the previous month, according to the survey by the Construction and Economy Research Institute of Korea.

However, the September figure remains below par. A reading below 100 indicates builders are pessimistic about the current state of the construction industry and outnumber those with optimistic views.

The CBSI soared to a near 19-year high of 106.3 in May on brisk apartment subscriptions and transactions after languishing below the benchmark for the first four months of the year.

Stung by the resurgence of COVID-19 and the summer heat, the index dropped to 89.4 in August from 92.9 the previous month.

The institute attributed September's rebound to active construction projects and an increase in new orders, which usually come after the summer heat.

The subindex for new construction orders stood at 106.6 in September, up 13 points from the prior month, with that for existing works gaining 12.5 points to 102.2.

The survey also showed more construction companies being upbeat about business conditions in October, with the CBSI for the coming month amounting to 109.4, up 14.5 points from September. (Yonhap)