Construction output rose 4.3% in June and brought the growth in H1/2000 to 2.3%. As the number of workers continue to fall, productivity of labor soars: by 8% in H1/2000 and even by 10% in June. Wage growth is significantly slower: 2.3% in June and even negative 0.7% for the whole H1/2000.
However, construction statistics is notoriously unreliable as it is plagued by high number of small (unreported) firms and even illegal contracts. Thus, we remain cautious and we exppect a very modest growth or stagnation of the sector in 2000. After falling by 7% in 1998 and 6.3% in 1999 it looks as a miracle, but it is a mediocre performance, still. We will see whether the government will be able to get its hyped Transport Fund up and running at all, as it has not established its board yet and its budget will have to go through the parliament, a lengthy procedure at best.