Construction investment in Japan is predicted to drop 3.2% from the year earlier to 49.67 trillion yen in fiscal 2015 and 1.9% down in fiscal 2016 at 48.74 trillion yen, the Research Institute of Construction and Economy and Economic Research Association announced. Despite the gradual recovery in private investment in non-residential sector, a decline in reconstruction after the 2011 earthquake and the public works is projected to affect the overall market trend.

Public works spending would decrease for two consecutive years, down 8.8% and 10.2% in 2015 and 2016 respectively, predicted the research bodies. Housing starts are expected to rise by 4.8% in 2015 to 923,000 units and to 963,000 in fiscal 2016. Non-residential private investment is likely to inch up by 1.3% from the precious year to 13.41 trillion yen in 2015 and to 15.78 trillion yen in the following term. (2015/10/22)