Construction Spending Seen Rising 7.7% In FY13

TOKYO (Nikkei)--Domestic investment in construction is projected to grow for the third straight year in fiscal 2013, climbing 7.7% from fiscal 2012 to 47.33 trillion yen, according to a forecast released Monday by the Research Institute of Construction and Economy.

Government construction spending is seen jumping 12.2% to 20.21 trillion yen thanks to new expressway projects and growth in tunnel and bridge repairs. It would be the first time in nine years such spending has topped 20 trillion yen and the first double-digit increase since 1992. Much of the work is related to rebuilding following the March 2011 earthquake.

Spending on private-sector housing construction is expected to rise for a fourth straight year, climbing 5.4% to 14.42 trillion yen in fiscal 2013.

Private-sector spending unrelated to housing is projected to grow 3.8% to 12.7 trillion yen thanks to more new construction of warehouses and cellular phone communication stations.

(The Nikkei, Jan. 29 morning edition)

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