Monthly Industry Briefings > Monthly Industry Forecasts > Construction

The pace of construction activity in Japan began to descend, to a rate of growth of 12.4% nominal on a year ago in Q1 2014, as it was always wont to do given that an unsustainably rapid pace of expansion of 18.13% was attained in October 2013. The construction cost deflator was running at 2.3% in February, so the real pace of advance is now at around 10% overall. Growth in the private buildings category, at 12.3% nominal, almost matches the overall rate of growth. By contrast, private sector infrastructural construction put in place is growing much more slowly, a modest 2.8% in Q1. Much of the activity has derived from the public sector of course; public sector construction works put in place is still running at a relatively strong 14.7%, albeit down from the peak of 26.75% in September 2013.