The volume of construction work in Croatia in October 2015 decreased by 4.8 per cent compared with October 2014, initial working-day adjusted data from the National Bureau of Statistics (DZS) show.
It was the third month in a row that the volume of construction work had shrunk, following drops of 1.6 per cent in September and of 0.5 per cent in August. In July it increased by 0.4 per cent.
"Following indications of a possible recovery, in the last three months total construction activity has fallen again, which shows that sufficient investment activity is still lacking," Zvonimir Savic, head of the Department for Financial Institutions, Business Information and Economic Analyses at the Croatian Chamber of Commerce (HGK), said in a comment on the DZS report.
The volume of construction work on buildings fell by 2.4 per cent and on other structures by 6.9 per cent.
Seasonally adjusted data showed that the volume of construction work in October 2015 was 1.5 per cent lower than in September 2015.
The HGK expects the difficult situation in the construction sector to continue in 2016. However, it is possible that the gradually increasing use of EU funding will result in projects that will translate into specific construction work which, together with further energy renewal of buildings and a gradual pickup in private investment, could lead to recovery, it said.