Euroconstruct revises forecasts downwards

The Euroconstruct network of European construction forecasters has revised its expectations for the market in 2013 to a decline of 3% – deeper than the 2.5% decrease it forecast at the end of last year.

The outlook for Europe’s construction output in 2014 has also changed, from expected growth of 1% to an increase of just 0.5%. Growth for 2015 of 1.7% is currently forecast.

“Hopes of a speedy recovery for the European Construction industry have been dashed,” Euroconstruct said.

“In several of the 19 Euroconstruct countries, the Euro crisis is continuing to hold construction activity in check. This trend is exacerbated by the situation in the world economy, which remains difficult.”

The strongest forecast declines in construction output next year are expected in Spain (-7.7%) and Portugal (-3.5%), while the largest increases are predicted for Norway (4.6%) and Sweden (3.5%).

In terms of sectors, residential construction shows the most promise for a recovery between now and 2015. Output is expected to decline 2.2% this year before returning to 1.1% growth in 2014, increasing to 2.3% in 2015.

But the outlook for non-residential construction and civil engineering is weaker. Non-residential construction is expected to fall 3.3% this year and a further 0.3% in 2014, before recovering to 1% growth in 2015. Civil engineering output is expected to drop 3.5% this year before returning to 0.4% growth in 2014 and 1.4% growth in 2015.