Construction grew by seven per cent from July to September

The Statistical Institute of Jamaica (STATIN) is reporting that the construction subsector grew by seven per cent, and agriculture, forestry and fishing by 2.5 per cent during the September 2020 quarter, which contracted by 10.7 per cent, relative to the corresponding period last year.

The figures for construction and agriculture, forestry and fishing are largely consistent with the Planning Institute of Jamaica’s (PIOJ) estimate of five per cent and two per cent, respectively, for both subsectors.

According to data from STATIN, these were the only subsectors recording growth in the goods-producing industry, which declined by 3.5 per cent.

The other two subsectors – mining and quarrying, and manufacturing – contracted by 20.7 and 10.9 per cent, respectively.

In a release on Thursday, STATIN attributed the decline in manufacturing to decreased output of 8.2 per cent and 14.6 per cent, respectively, for the food, beverages and tobacco, and other manufacturing sub-industries.

Additionally, PIOJ said levels of mining and quarrying output were largely the result of the continued impact of the suspension of production at the Jiuquan Iron and Steel Company (JISCO) Alpart refinery in St Elizabeth, in September 2019.

STATIN also reported that all subsectors in the services industry, except producers of government services, declined.

Producers of government services grew by 0.1 per cent, despite the services industry contracting by 13.1 per cent.

NEGATIVE IMPACT

The out-turns saw hotels and restaurants falling by 65.2 per cent; transport, storage and communication, down 14 per cent; wholesale and retail trade, repairs, installation of machinery and equipment, down 8.1 per cent; electricity and water supply, down 7 per cent; finance and insurance services, down 5.6 per cent; and real estate, renting and business activities, down 2.8 per cent. The category ‘other services’ contracted by 27 per cent.

STATIN noted that the negative impact of the COVID-19 pandemic and the measures implemented to limit its spread were felt more severely in the hotels and restaurant, transport, storage and communication and other services industries.

The PIOJ noted that there was an 81.8 per cent decline in stopover arrivals to Jamaica, while there were no cruise passenger arrivals for the period under review.

The 10.7 per cent contraction in the September quarter was also attributed to the continued spread of COVID-19 and measures to limit its spread.

STATIN said, despite the 10.7 per cent third-quarter calendar contraction in growth, relative to 2019, the economy increased by 8.3 per cent for the review period, compared to the April to June quarter.

This, the PIOJ pointed out, resulted from increases in both the services and goods-producing industries of 8 and 9 per cent, respectively.

STATIN said this out-turn reflected the relaxation in some of the measures instituted in the second quarter of 2020 (April to June) to limit the spread of COVID-19.

STATIN’s figures on growth represent the official data on economic performance for the review period.