According to the Economic and Steel Market Outlook 2024-2025/Q3 2024 Report from the Economic Committee of the European Steel Association (EUROFER), in the first quarter of 2024, construction output in the EU decreased by 2.3 percent year on year, due to the increase in material prices, labor shortages in certain EU countries, growing economic uncertainty, and rises in interest rates amid monetary policy tightening. This negative trend is expected to continue throughout this year, mainly due to the delayed impact of high interest rates and higher mortgage rates on housing demand despite a potential further easing in monetary policy.
In the given quarter, in line with real production volumes, investments in construction dropped by 1.2 percent year on year, after rising by 0.3 percent in the previous quarter.
According to EUROFER, the sector is expected to experience a more pronounced recession of 1.4 percent in 2024. However, the association forecasts a recovery of 1.8 percent in 2025, primarily due to the projected impact of monetary easing.