<p>European Steel Association EUROFER in latest Economic and steel market outlook 2022-2023 said that the positive trend in construction output seen over the first three quarters of 2021 continued, albeit at a slower pace, in the fourth quarter at 2.3%, after 4.1% over the third quarter. Over the entire 2021, construction output in the EU rebounded by 5.9% after the drop of 4.2% experienced in 2020. EUROFER said “The figures for the first three quarters of2021 reflected the vigorous restart in economic activity across the EU. The boost by governmental support schemes at EU and national level especially benefitted the private residential and civil engineering sub-sectors. However, in the fourth quarter growth in construction output lost speed, further to ongoing problems along the global supply chain and increasing scarcity of construction materials in many EU countries.”</p><p>In line with real production volumes, in the fourth quarter of 2021 gross fixed investment in construction increased by 2.11 on a yearly basis for the fourth consecutive time albeit lower than 31 recorded in the third quarter. Growth was fuelled by residential investment at 2% after 3.7%, boosted by low mortgage rates, despite expectations of rises in rates in connection with rises in government bond yields, and generous housing and renovation supporting schemes in place in many Member States. Positive developments were seen also in 'other construction' investment, in particular in civil engineering. Its expansion should be stronger in the course of 2022, as governments are set to use it as a cyclical tool (thanks also to NextGenerationEU programs) to bolster the economic recovery. However, the impact of these publicly-funded construction schemes is becoming increasingly uncertain due to multiple downside factors that are casting shadows on the overall economic outlook (supply chain issues, war in Ukraine, etc.). In particular, the shortage of construction materials is becoming a source of concern.</p><p>Construction industry analysis forecast for 2022-2023 - The EU construction confidence substantially improved after the record lows of the pandemic, almost reaching 2018 levels in the course of 2021. Yet supply chain disruptions and the deterioration of the economic and industrial outlook in the second half of 2021 have changed the picture considerably. Overall construction activity should, however, continue to grow - albeit at rather low rates - mainly thanks to governmental housing supporting schemes, and public construction schemes. Civil engineering is expected to provide the strongest contribution to the construction sector's performance. Construction outlook for 2022 shows moderate growth of 2.31, which will further ease in 2023 to 1.51</p>
<p>European Steel Association EUROFER in latest Economic and steel market outlook 2022-2023 said that the positive trend in construction output seen over the first three quarters of 2021 continued, albeit at a slower pace, in the fourth quarter at 2.3%, after 4.1% over the third quarter. Over the entire 2021, construction output in the EU rebounded by 5.9% after the drop of 4.2% experienced in 2020. EUROFER said “The figures for the first three quarters of2021 reflected the vigorous restart in economic activity across the EU. The boost by governmental support schemes at EU and national level especially benefitted the private residential and civil engineering sub-sectors. However, in the fourth quarter growth in construction output lost speed, further to ongoing problems along the global supply chain and increasing scarcity of construction materials in many EU countries.”</p><p>In line with real production volumes, in the fourth quarter of 2021 gross fixed investment in construction increased by 2.11 on a yearly basis for the fourth consecutive time albeit lower than 31 recorded in the third quarter. Growth was fuelled by residential investment at 2% after 3.7%, boosted by low mortgage rates, despite expectations of rises in rates in connection with rises in government bond yields, and generous housing and renovation supporting schemes in place in many Member States. Positive developments were seen also in 'other construction' investment, in particular in civil engineering. Its expansion should be stronger in the course of 2022, as governments are set to use it as a cyclical tool (thanks also to NextGenerationEU programs) to bolster the economic recovery. However, the impact of these publicly-funded construction schemes is becoming increasingly uncertain due to multiple downside factors that are casting shadows on the overall economic outlook (supply chain issues, war in Ukraine, etc.). In particular, the shortage of construction materials is becoming a source of concern.</p><p>Construction industry analysis forecast for 2022-2023 - The EU construction confidence substantially improved after the record lows of the pandemic, almost reaching 2018 levels in the course of 2021. Yet supply chain disruptions and the deterioration of the economic and industrial outlook in the second half of 2021 have changed the picture considerably. Overall construction activity should, however, continue to grow - albeit at rather low rates - mainly thanks to governmental housing supporting schemes, and public construction schemes. Civil engineering is expected to provide the strongest contribution to the construction sector's performance. Construction outlook for 2022 shows moderate growth of 2.31, which will further ease in 2023 to 1.51</p>
