European building materials and construction - Minor cut to Euroconstruct forecasts for 2019/2020

Davy Research
/Read Important Disclosures

In its semi-annual update, Euroconstruct has revised its activity forecasts slightly lower for both 2019 and 2020. Overall, European construction output is now expected to grow by 1.9% in 2019 (previously: 2%) and 1.5% in 2020 (previously: 1.6%). Infrastructure is forecast to do the heavy lifting with growth of 4.2% expected in 2019. New residential expectations have improved with growth of 1.7% (previously: 1.1%) anticipated, albeit largely at the expense of residential RMI where growth forecasts have declined to 0.8% (previously: 1.2%). Eastern Europe continues to lead the way with construction output growth of 7.4% indicated in 2019. Forecasts were revised higher for Ireland, Belgium and Spain. Not surprisingly, expectations for the UK have reduced again.