Construction sector sees uneven growth as bitumen costs surge in 2024

The construction sector showed mixed performance in early 2024, with some segments thriving while others struggled. Rising material costs, including a sharp increase in bitumen prices, added pressure across the industry. Sales growth varied, with civil engineering leading the way and residential construction showing tentative signs of recovery. In the first four months of 2024, new orders in the construction sector rose by 1.8% compared to the same period in 2023. However, cumulative revenue remained flat overall. April brought a shift, as residential construction revenue and new orders exceeded 2023 levels for the first time in months, though this did not yet signal a full trend reversal.

Civil engineering emerged as the strongest performer. It drove sales growth across all three main construction segments. Public-sector construction revenue increased in April, with civil engineering contributing a nominal 6.5% to the rise. Commercial construction also played a role, boosting April’s revenue by a nominal 6.8%, largely due to commercial civil engineering projects.

Non-residential construction lagged behind, failing to match the growth seen in other areas. Meanwhile, material costs continued to climb. By May 2026, bitumen prices had surged by 31.2% year-on-year, primarily due to tensions in the Strait of Hormuz. Broader price hikes for materials squeezed businesses across the industry. The sector faces ongoing challenges from rising costs, particularly for key materials like bitumen. While civil engineering and public-sector projects provided a boost, non-residential construction trailed. Residential construction’s recent gains offer cautious optimism, but a sustained recovery remains uncertain.