Picture du Jour: Chinese construction – boom or bubble?

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It would not take too much guessing to figure out where the bulk of the world’s construction activity is taking place. Of course, it is in China, but who would have thought global construction would decline from a year-on-year rate of almost 20% to close to zero once China is stripped out? This is what the fascinating chart below by CRU, WSD and Mcquarie Research (via Agora Financial’s 5 Min Forecast) highlights.

“The Chinese are laying highways like nobody’s business,” added Agora’s Chris Mayer. “By the end of 2008, China had an estimated 60,000 km of highway. The US has 75,000 km. Over the next few years, China plans to have 85,000 km of roads.”

Is building activity in China a boom or a bubble? Please share your thoughts with readers by posting a comment. (Click on “Comments” below the heading of this post and type away.)

china-bubble

Source: Agora Financial’s 5 Min Forecast, March 10, 2010.

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1 comment to Picture du Jour: Chinese construction – boom or bubble?

  • Tal

    Nice chart. would like to see the breakdowns of construction
    US
    Europe
    Asia
    China
    Residential Single family
    Residential Multi family
    Hotels
    Commercial
    Industrial
    Major High Rise office buildings
    Highway/road construction
    RR road construction
    In China: how much related to replacement housing due to the construction of the Dam – I understand they underestimated by a couple million people –
    Along with “Under construction”, I’d like to see the trend of vacency of homes, apartments, condo’s, hotels, office sq footage in past 3 years and forecasts fr next three years.

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