In February, the Aluminium Formwork Engineering Development Index remained within the contractionary range, declining by 4.9 percentage points from the previous month. Examining the sub-indices, the Production Index and Supplier Delivery Time Index among the five key indicators hovered around the boom-bust line, while the Production Index, New Orders Index, Raw Materials Inventory Index, and Employment Index all fell below the threshold. Notably, the production side contracted significantly, demand-side indices rose modestly, and the Employment Index declined markedly.
Two points warrant attention.
Firstly, the National Conference on Housing and Urban-Rural Development convened in Beijing from 22 to 23 December. The meeting emphasised that housing concerns extend beyond mere livelihood issues to encompass developmental priorities. During the 14th Five-Year Plan period, the delivery targets for affordable housing were fully realised, the development of new real estate models accelerated, and a societal consensus on constructing 'quality housing' took shape. Nationwide, approximately 5 billion square metres of new commercial housing were sold, with over 11 million units of various affordable housing types initiated. Urban shantytown and old-city renovation projects benefited over 30 million people. Housing provident fund loans totalled 6.5 trillion yuan, while 9.4 trillion yuan was withdrawn by depositors for housing consumption. Additionally, 1.789 million dilapidated dwellings for low-income rural households were renovated, further improving living conditions. The meeting emphasised that to achieve high-quality development in the real estate sector during the Tenth Five-Year Plan period, it is essential to accurately grasp the significant shifts in the supply-demand dynamics of the property market. It noted that China's new urbanisation drive continues to advance, with ample scope for optimising and adjusting the existing urban housing stock. The public's evolving expectations for 'quality housing' indicate that the real estate industry retains substantial development potential.
Secondly, the construction sector has seen a rebound in growth, with investment-related activities accelerating. In December 2025, the Business Activity Index for the construction sector stood at 52.8%, marking a 3.2 percentage point increase month-on-month and a notable year-on-year growth rate, ending four consecutive months of activity below the 50% threshold. By sector, both residential construction and civil engineering construction saw their business activity indices rise to varying degrees from the previous month, with both returning above the 52% threshold. As the composite index shifted, construction activity continued to decline, though at a markedly faster pace than the previous month. The acceleration in growth across these two core sectors indicates that investment-related activities entered an accelerated launch phase towards year-end, injecting crucial momentum into macroeconomic stability and providing robust support for achieving annual economic targets. The accelerated pace of residential construction indicates concentrated advancement in projects such as affordable housing development and urban renewal. The acceleration in civil engineering activities, meanwhile, signals increased momentum in key infrastructure construction. Concurrently, construction enterprises maintain optimistic outlooks for future market conditions, with the business activity expectations index remaining above 57% for two consecutive months.