Stable outlook for global construction industry supported by infra spending: Moody's

Moody's Investors Service on Wednesday said it expects slowing but still healthy revenue growth of 4 per cent on average for rated construction companies over the next 12-18 months, underpinned by healthy construction demand. Although this is much lower than the average 9 per cent revenue growth recorded in 2018, it is reflective of the global slowdown in GDP growth and remains supported primarily by infrastructure spending, it said in a statement.

"...healthy revenue growth and book-to-bill ratios point to supportive business conditions for the global construction sector, supporting its stable outlook for the industry over the next 12-18 months," it said. Revenue growth will be the strongest in China, averaging 6 per cent for rated construction companies over the coming 12-18 months, although down from 10 per cent in 2018.

Growth will be driven by an increase in infrastructure spending, which is partially offset by weakness in the property and industrial sectors, it added.