Construction firms expected to rebound

Construction firms are expected to do better in the second half of 2024. This is because the economy is improving and the government is spending more on building projects, according to a report by BusinessWorld.

"The economy is getting stronger, and the government is investing more in building projects. This will help construction companies do better," said Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks Inc. said in the report.

China Bank Securities Corp. Research Associate Neil Andrew L. Maderaje also said he is optimistic about the future of construction companies. He said that the government's infrastructure projects and private developments are driving growth in the construction industry.

In August, the Department of Budget and Management (DBM) reported that the government spent 17% more on building projects in June. This is because the government paid for more completed projects.

"We think that construction activity will increase as businesses want to expand," said Maderaje. "This will help construction companies earn more money."

However, not all construction companies did well in the second quarter. Megawide Construction Corp. and Phinma Corp. both reported losses. But EEI Corp. made a profit.

"The economy is getting better, and interest rates are going down. This will help construction companies do better," said Maderaje.