Fears Japanese building boom will end in 2013
Experts have warned that the construction boom in Japan may end early next year – despite fresh figures showing orders had increased again
Official data revealed that the total value of construction orders reached £4.1 trillion Yen (£32.2bn) in July.
This was the fourth consecutive month of increased work in the industry, and represented an 18 per cent hike from the same month a year earlier.
The growth was driven by a 24 per cent year-on-year increase in the value of public sector construction work.
Parts of Japan require major rebuilding following the devastating earthquake and tsunami of March 2011.
But the Royal Institution of Chartered Surveyors said this effort may reach a peak in the early weeks of 2013.
RICS economist Andy Wu said: ‘As the reconstruction needs may peak out by early 2013, overall growth momentum in the building industry could fade quickly.’
He said the fall in workload should not be too dramatic as the government remained committed to further reconstruction in the Tohoku region.
Civils work grew by 30 per cent year-on-year to 1.2trn Yen in July 2012, while building work increased by 22 per cent to 2.5trn Yen