According to the Economic and Steel Market Outlook 2022-2023/Q3 2022 Report from the Economic Committee of the European Steel Association (EUROFER), in the first quarter construction output in the EU increased by 16 percent, following a rise of 6.6 percent in the fourth quarter last year, both year on year.
According to the EUROFER report, in line with actual production volumes, gross fixed investment in construction in the EU grew for the fifth consecutive quarter, increasing by 1.8 percent year on year in the first quarter this year. Growth in the first quarter was fueled by the increase of 4.9 percent in residential investments despite the expectation of higher future mortgage rates due to possible monetary policy tightening.
Civil engineering is expected to provide the strongest contribution to the construction industry’s performance. This segment will be supported by EU-wide public policies, though their effects have become increasingly uncertain and difficult to quantify, in light of the recent deterioration of the economic outlook.
According to EUROFER, the construction activities in the EU in 2022 are expected to increase by 5.3 percent, higher growth than previous estimation of 2.3 percent, amid positive developments in the first half. However this trend is expected to ease in 2023 and the construction activities are expected to rise by 0.6 percent in the given year.