Mixed signs of recovery in Peru's construction sector

Peru’s construction industry is showing mixed signs of recovery. 

After cement consumption – a proxy for private sector projects – grew 9% in January compared to the same month 2023, the figure in February fell 2% year-on-year and 13% compared to January 2024.

The figures come from a report by cement producers’ association Asocem, which groups the main sector companies such as Unacem, Cementos Pacasmayo and Cementos Yura.

Shipments of 890,000t in February were the lowest in recent months. From January 2023 onwards, monthly shipments were above 900,000t, hitting a maximum of 1.1Mt last August.

According to the report, cement production in February was the lowest since January 2023 at 818,000t, down 5% compared to February 2023 and 11% from January 2024.

Although a recovery is expected, production in recent months has followed a downward trend.

Month	Production
October 2023	1.02 Mt
November 2023	988,000t
December 2023	928,000t
January 2024	924,000t
February 2024	818,000t

Source: Asocem / Preparation: BNamericas

Despite the fall in February cement consumption, Capeco – Peru's main construction association – estimates that overall the sector grew 5.8% year-on-year in the month as a result of public investment rising 65.4%. 

Although there is some optimism, Capeco recognizes that the drop in February reflects the difficulties of the private sector, and that institutional weakness continues to affect potential investments.

The central bank expects the construction sector will grow 3.2% in 2024 after having shrunk 7.9% in 2023.