According to the Economic and Steel Market Outlook 2011-2012/Q4 2011 Report from the Economic Committee of the European Steel Association (EUROFER), EU construction activity grew two percent year on year in the second quarter of 2011, while the growth rate was almost eight percent in the previous quarter.
At the country level, Poland, Germany, Sweden and France have seen a positive trend during the first half of the year, whereas Spain and Hungary posted double-digit decreases.
According to EUROFER, the fall in construction sector confidence in September indicated that construction companies are not expecting any near-term improvement in market conditions.
EUROFER stated that the recovery in Poland, Germany, Sweden and France will continue, but at a slower pace. Activity in residential and renovation and modernization projects will further improve, unlike the publicly funded infrastructure and non-residential activity. As a result, increase in demand for constructional steel products will be slow.
EUROFER predicts that EU construction output will increase by almost 2.5 percent in 2011, followed by three percent growth in 2012.