MEED’s Construction Market Index (CMI) recorded a positive result for September with an overall score of 56.4 for the month, although the score was down by about one point from the 57.9 recorded for August.

A score above 50 indicates that the overall market conditions for the construction sector are improving, whereas a score of below 50 indicates that the market conditions are worsening. The index is generated by collecting data from construction companies on five key metrics: turnover, backlog/order book, headcount, cash flow, and outlook for the next six months.

The most positive of the five metrics surveyed in September was turnover which registered a score of 63.6. This was down from a score of 71.4 in August. As turnover increased, backlog registered a negative score of 45.5 – the worst performing of the five metrics in September, down from 46.4 in August.

The decrease in backlog suggests that not enough new work was awarded in September to replenish contractor’s order books. This could be explained by the weeklong Eid holidays during the month.

There were still some major awards. MEED reported contract awards during September on projects including the Sheikh Mohammed bin Rashid Library in Dubai, Silicon Park in Dubai, Maryah Plaza in Abu Dhabi, and Diyar al-Muharraq in Bahrain, a Saudi Aramco residential compound, Saudi economic city villas, and the Pearl Qatar.

There also appears to be improving sentiment for cashflow with the score moving above 50 for the first time. In August the score was neutral at 50, and in July the score was the worst performing metric with a score of 38 – the worst performance by a single metric since the index began. In September it was 59. The move into positive territory could be due to payments being released after delays during the summer months.