Home construction - Euroconstruct more cautious on growth prospects for European construction in 2020

Davy Research
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In Euroconstruct’s latest semi-annual review, there is a mixed outlook for European construction activity. It now expects volumes will have increased by 2.3% this year; back in June, a 1.9% expansion in 2019 was envisaged. However, for 2020, Euroconstruct is now forecasting volumes will rise 1.1%, down from a previous estimate of up 1.5%. The best-performing sector next year is expected to be infrastructure (+2.6%), while new residential activity is forecast to be flat. From a country perspective, Ireland is now anticipated to be the fastest growing construction market in Europe with growth of 6.3% predicted. Elsewhere, the outlook for construction in some of the important continental markets such as Germany (-0.6%), France (+0.4%) and the Netherlands (+0.5%) is very subdued for next year. However, there is more optimism in relation to the UK with construction volume growth now expected to improve to 1.4%.