Construction sentiment in India continues to remain buoyant

Construction sentiment in India continues to remain buoyant
According to the latest RICS India Construction Market Survey for Q3 2012, workloads in the construction sector continue to rise despite the slowdown in the wider economy. The survey results indicate that sentiment remains relatively upbeat for both the private housing and private industrial sectors. However,  sentiment has turned negative for public non-housing segments. Additionally, workloads in energy, and oil and gas edged lower for the second consecutive quarter.
Interestingly, the all-important infrastructure sector is continuing to witness growth, albeit at a more modest pace than in the previous quarter of the year. Also, the RICS India Construction Survey which has been designed to capture the sentiment of professionals working in the sector indicates that respondents are fairly upbeat on the prospects of workloads, employment and profit margins in the coming year. In fact, 97 per cent of the respondents anticipate an increase over the next 12 months on workloads, with growth expected to average between 7.5 and 10 per cent. However, the projected gain in employment in the sector over the same period is little more modest at 2.5 to 5 per cent. Not surprisingly, given the strength of workloads in the present quarter and what is expected ahead, shortage of skilled labour continues to be a key factor in limiting construction activity in the country at present. Responses to the survey indicate that skilled-labour shortages were visible across all fields.

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