According to the Economic and Steel Market Outlook 2014-2015/Q2 2014 Report from the Economic Committee of the European Steel Association (EUROFER), first estimates for construction sector activity in the first quarter of this year signal a rise of just over three percent compared with the same period of 2013. It should be noted, however, that activity in the first quarter of the previous year had been badly affected by severe winter weather conditions across the EU. Therefore, this growth represents rather a seasonal effect than a more structural rebound in construction activity.
EUROFER said that the outlook for the remainder of 2014 is for the EU construction downturn to bottom out in the current quarter and to resume positive growth from the third quarter following a seven-year period in which total construction activity was reduced by 18 percent. A further rise is on the cards for 2015.
The improvement in construction investment in 2014-2015 will be driven primarily by the residential sector, both via new projects and via renovation and modernization work. Continued growth is foreseen for Germany, the UK and Sweden, while in several other countries activity is expected to recover from a low level.
According to EUROFER, construction activity in the EU in 2014 is forecast to rise almost 1.5 percent and by around two percent in 2015.