According to the Economic and Steel Market Outlook 2017-2018/Q3 2017 Report from the Economic Committee of the European Steel Association (EUROFER), EU construction activity rebounded rather sharply in the first quarter of the current year. Total construction output in the first quarter rose by 4.6 percent compared with the relatively weak activity level registered in the same period of 2016. First estimates for activity growth in the second quarter signal the continuation of the rebound, but most likely at a somewhat more moderate pace.
According to EUROFER, strong demand for housing will remain the key driver of construction activity growth in the remainder of this year and in 2018 across the western part of the EU. Growth of non-residential activity is also forecast to gain momentum in the current year and 2018; the increase in housing demand requires also investment in buildings for health and education, shopping and sports facilities. Civil engineering activity is projected to increase as well and particularly so in 2018 in the central European countries. This sector is heavily dependent on public funding; infrastructure activity in this region will by then gain access again to EU funds for new construction and renovation of roads, motorways, railways, bridges, harbors, water and sewage works.
The EUROFER report indicated that total EU construction output is forecast to rise by 3.1 percent in this year, while in 2018 construction output is forecast to increase by 2.8 percent.