Construction slump deepens as permits decline – PSA

Total approved building permits declined further in November 2025, with 12,281 permits approved, marking a 16.3 percent year-on-year drop, according to preliminary data from the Philippine Statistics Authority (PSA).

The figure also represents a decline from the revised October total of 13,372 permits, translating to an 8.2 percent month-on-month decrease and signaling continued weakness in construction activity amid the fallout from the flood control scandal.

Approved building permits, as defined by the PSA, cover permits secured by both the public and private sectors for various construction and infrastructure projects.

By type of construction, residential buildings accounted for the largest share, with 7,691 projects, or over 60 percent of total constructions for the month. This marked a 14.5 percent decline from 9,000 residential projects approved in November last year.

Non-residential constructions likewise fell by 9.7 percent year on year. In value terms, total construction activity amounted to P40.20 billion, down 22.6 percent from P51.91 billion recorded in the same month last year.

Based on the PSA’s revised October figures — 13,372 approved permits with an estimated project value of P45.97 billion — the November data reflect a 12.6 percent month-on-month decline in project value, equivalent to roughly P5.77 billion lost due to fewer approved permits.

Economists have widely cited the contraction in construction activity linked to the floodgate scandal as a key driver of the broader economic slowdown in 2025. In response, the national government has earmarked P1.3 trillion for infrastructure spending in 2026 in an effort to address backlogs caused by ongoing investigations into anomalous projects.

“As much as possible, we want to increase further, moving forward in the medium term, so we want to increase investment in terms of our infrastructure projects,” said Department of Budget and Management Acting Secretary Rolando Toledo during a recent Malacañang press conference.

Toledo assured the public that the 2026 national budget contains no ghost projects and said the infrastructure spending target is achievable.