According to the Economic and Steel Market Outlook 2013-2014/Q2 2013 Report from the Economic Committee of the European Steel Association (EUROFER), in the first quarter of the current year construction activity in the EU is estimated to have declined by five percent year on year. The long duration of harsh weather conditions had a strongly negative impact on construction output in most EU countries.
Construction demand was severely affected by the impact of economic uncertainty and financing restraints for both publicly and privately financed projects, affecting all sectors from residential and non-residential to civil engineering.
On country basis, in the first quarter the strongest reduction in activity was registered in Spain with a 15 percent year-on-year decrease, but also in Poland with an 11 percent year-on-year decrease. For the rest of the year, only Germany, Belgium and Austria are expected to see a slight growth in activity this year, while Spain and Poland will register a sharp decline. Despite several other EU countries returning to moderate positive growth towards the end of 2013, the year-on-year trend in output is foreseen to remain negative during the remainder of the year.
According to EUROFER, the outlook for construction activity in the EU in 2013 is unfavorable. Construction investment is expected to slip further, for the sixth consecutive year. Difficult access to public and private project funding remains a key issue.
For 2013, EUROFER expects construction output in the EU will fall by almost two percent, while in 2014 improving economic and financing conditions should unleash some pent-up demand across the EU and result in a rise of around one percent in EU construction output.
