New figures from GlobalData show that the health of the construction sector in South Asia is worse than in most other regions, and the situation is deteriorating.
South Asia has received an overall score of 0.4 on GlobalData’s March 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score which is continually updated over time. These are then weighted by the value of each project in order to come to overall scores for countries, regions and sectors.
That score puts South Asia in 7th place out of 11 regions, and is a decrease on its score from January 2022 (0.7) when it ranked in 4th place.
One reason for South Asia's relatively poor performance in the index is its commercial & leisure sector, which scores just 0.17, putting it in 10th place out of 11 regions worldwide.
South Asia's institutional sector, by contrast, has performed somewhat better, with a score of 0.66 (putting it in 7th place globally).
Within South Asia, the problems in the construction sector are most significant in Bangladesh, which scores just 0.27 in the index. The situation in India, however, is somewhat better with a score of 0.43.
The deterioration of the construction pipeline in South Asia is partly due to issues in the region's energy & utilities sector, which has seen its score on GlobalData's Construction Project Momentum Index fall from 0.6 in January 2022 to 0.19 in March 2022.
The construction sector is also increasingly struggling to meet deadlines in Pakistan, which has seen its score on the index go from 0.64 in January 2022 to 0.35 in March 2022.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids or the reducing of the project's scope.
Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.