Construction Sector Grows in All 19 Member Countries for the 1st Time in 2017
Construction volume in the Euroconstruct area has grown by an estimated 3,5 % in 2017. The strongest stimuli once again came from residential construction.
Developments in 2017 are remarkable for two reasons. Firstly, growth in construction measures in Europe reached its highest level since 2006, that is shortly before the outbreak of the international financial crisis. Secondly, construction demand rose in all 19 member countries in 2017. This is the first time that growth has been seen across the board in Europe since Germany’s reunification; and it looks like this feat will be repeated in 2018. The European construction industry has now been on track for growth since 2014. Construction output in the four years from 2014 to 2017 has increased by a total of 9 %. A further increase of 6 % can be expected in the 19 Euroconstruct member states by 2020. Growth rates will slow considerably in the future in both residential construction and non-residential construction, while civil engineering will take over the role of market driver in the medium term. The latter is also expected to grow at the unprecedented rate of over 4 % in 2018 and 2019 respectively. At the same time, the newbuild segment will clearly lose momentum in the years ahead. By 2020 the renovation sector is expected to see stronger growth than new construction for the first time since 2014. In Germany construction activity in 2017 even increased more strongly than in 2016, driven by higher demand for residential accommodation, a greater willingness to invest on the part of companies and a civil engineering drive by the German government. Although growth will slow down significantly in the mid-term, investment in both the residential and the infrastructure segments is expected to be high in the long term.