According to the Economic and Steel Market Outlook 2012-2013/Q2 2012 Report from the Economic Committee of the European Steel Association (EUROFER), EU construction activity grew 3.7 percent year on year in the fourth quarter of 2011.
At the country level, Germany saw 12.7 percent year-on-year growth in construction activity in the given quarter, while France and Sweden also gained momentum due to positive developments in the residential construction sector. Poland registered a strong growth owing to continued support from infrastructure projects. On the other hand, Spain saw a sharp decline in the given period.
According to EUROFER, the outlook for the EU construction sector in the remainder of 2012 is not bright; most countries which registered a positive trend in 2011 are expected to see a loss of momentum. Severe budget cuts applied by governments will affect publicly funded construction projects in the civil engineering and building sectors.
EUROFER predicts that EU construction output will increase by around 2.5 percent in 2013, while EU investment in construction is expected to register a modest growth.