Peruvian construction industry growth remains below expectations

After rebounding 8.3% year-on-year in April, Peru's cement consumption – a proxy for private sector projects – fell 1.9% in May.

In May, 958,000t were shipped, compared to 975,000t in April and 977,000t in May 2023, a report by cement producers association Asocem said. Asocem represents major players like Unacem, Cementos Pacasmayo and Cementos Yura.

Production fell 4% to 887,000t in May and generally remains lower than in 2023.

In Peru, construction GDP is based on internal cement consumption, physical progress of public works and the construction of non-concrete homes. Of the three variables, cement consumption explains on average more than 70% of activity in the category, according to the statistics institute INEI.

While monthly shipments this year have exceeded last year's levels only in January and April, the overall volume is higher.

Month	2023	2024
January	928,000t	1.02 Mt
February	904,000t	901,000t
March	980,000t	914,000t
April	900,000t	975,000t
May	977,000t	958,000t
Accumulated	4.69Mt	4.76Mt

Source: Asocem

Although shipments increased 1.58% in the first five months, the central bank projects construction sector growth of 3.2% this year, indicating that a rebound is still far away.

Economic indicators are expected to improve in H2 and that public works will continue to grow at double digits to counteract the fall in the private sector.

“We are going to continue growing significantly. The economic figures coming for the second half are very good, and we have the capacity to even improve them,” prime minister Gustavo Adrianzén told reporters recently.