According to the Economic and Steel Market Outlook 2013-2014/Q1 2013 Report from the Economic Committee of the European Steel Association (EUROFER), in the third quarter of 2012 construction activity in the EU declined by five percent year on year, while in the fourth quarter of the year it is projected to have fallen by around four percent. The output in the EU construction sector is estimated to have declined by 4.6 percent in 2012, the sharpest annual drop in production since 2009.
Construction demand was severely affected by the impact of austerity measures on public sector investment.
On country basis, in 2012 the strongest reduction in activity was registered in Spain, but also in Italy, the Netherlands and Slovakia outputs fell sharply, while Austria, Poland and Sweden were able to register a moderate increase, all compared to the previous year.
According to EUROFER, the outlook for the construction activity in the EU in 2013 is not good. Construction investment is expected to decline further, for the sixth year in a row. Austerity will intensify, in order to meet EU deficit targets amidst a weakening economic framework.
For 2013, EUROFER expects construction output in the EU will fall by almost two percent, while in 2014 improving economic conditions, rising sentiment and easier financing should unleash some pent-up demand across the EU and result in a rise of around one percent in EU construction output.