Chart of the Day: Public construction progress payments to rise in 2018

This will be supported by the work in the 21.5km North-South Corridor.

This chart from RHB Research shows that public construction projects that are set to pick up and ease the sector’s contraction of 8.4% in 2017.

Latest data shows that progress payments dipped to around $1.1b-$1.2b from December 2017. The value of contracts awarded is still on the decline from $1.5b in January to around $1b so far.

The work on the 21.5km North-South Corridor – which was pushed back from its scheduled start date in mid-2017 to 2018 – and the additional $1.4b worth of public sector contracts brought forward over the next two years, would provide some support for the sector.

The brokerage expects the contraction to ease to 4.5% in 2018.