A November file photo of construction activity on the northern stand at Sabina Park, being readied for Cricket World Cup 2007 scheduled for March. - File

Camilo Thame, Business Reporter

The building sector regained some of its vibrancy as new projects and public spending on infrastructure programmes kicked in, but the accompanying 22 per cent increase in cement supplies to the market were not enough to eke out growth for construction GDP.

The sector, which in calendar 2005 contributed 10 per cent of GDP or $720 billion of national earnings, declined by 2.8 per cent in real terms, based on Planning Institute of Jamaica figures reported last week.

After four consecutive quarters of declines, the three months to December 31 saw the first uptick - one per cent - for the sector on last minute efforts to complete preparations for Cricket World Cup scheduled for this March and o port expansion activities during the quarter.

In the last three months of 2006, the Port Authority of Jamaica (PAJ) spent close to $1.5 billion upgrading its cargo handling facilities, up from $67 million in the comparative quarter.

Overall, government spent $8.9 billion on capital projects during the December quarter compared to $3.6 billion in the comparative 2005 period.

The state's capital spending at $21.6 billion for 2006 was 31 per cent higher than the year prior.

The start of the 600-room hotel in Hanover, Fiesta, back in October along with continued works on other Spanish hotels helped keep spending in construction above 2005 levels.

A significant chunk of the 143,000 tonnes of cement brought in by two major importers, Mainland International and Arc Systems, sat down in warehouses ,reliable sources say, despite the voracious demand for the product at the beginning of the year, explaining in part why increased construction activities during the latter part of the year did not translate into growth for the sector.

Manufacturing, which contributes 13 per cent of GDP, continued its declined during the last quarter as a result of Cigarette Company of Jamaica moving its factory operations to Trinidad during the last quarter of 2005, ending the year down 2.2 per cent on 2005.

All other goods producing sectors saw an increase in output.

The agriculture sector grew by 15 per cent due largely to favourable weather conditions and initiatives geared at improving productivity, while mining and quarrying, according to the government planning agency, saw real increase in output of 1.8 per cent.

Crude Bauxite production for the purpose of export increased by 6.2 per cent during the December quarter to push production for 2006 to 4.5 million tonnes, 12 per cent above 2005 levels, while alumina production rose by 7.2 per cent in the final quarter to bring up production for the year to 4.1 million tonnes, the same as last year.

Alumina production declined on the year before for seven of the first nine months of 2006.

According to the PIOJ all areas of the services sector saw a real increase in output during 2006.

Transport, storage and communication, up 4.6 per cent, as air and maritime cargo volume increased significantly over the year, coupled with the increased passenger movements during the year as total tourist visiting the island increased to 3 million people;

Distribution increased by 1.2 per cent benefitting from higher consumption linked to increased loans and remittances, which were 9-10 per cent higher than last year's US$1.62 billion.

Other growth sectors were, Electricity and water, growing at 3.5 per cent, finance and insurance services at 2.5 percent and hotels restaurant and clubs, which ended the year 12.4 per cent higher than in 2005, according to PIOJ estimates.

Overall, the economy recorded GDP growth of 2.7 per cent, PIOJ reported.

camilo.thame@gleanerjm.com