European Steel Association EUROFER in latest Economic & Steel Market Outlook said that construction output in the EU rebounded by 5.9% in 2021 after the drop of 4.2% experienced in 2020. EUROFER said “Growth was fuelled by residential investment, 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 programmes 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.EUROFER said “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. This segment will also be supported by EU-wide public policies. Their effects have become increasingly uncertain and difficult to quantify, though, in light of the recent deterioration of the economic outlook due to the war in Ukraine and persisting supply chain issues. Nonresidential construction paid the highest toll to the pandemic in 2020 and also partly in 2021 with increasing vacancy rates, a trend that may continue as tele working has remained rather common in the post-pandemic scenario. The subdued business investment outlook remains unfavourable to investment in non-residential projects in the near future. The outlook for 2022 shows moderate growth of 2.3% which will further ease in 2023 to 1.5%.”
European Steel Association EUROFER in latest Economic & Steel Market Outlook said that construction output in the EU rebounded by 5.9% in 2021 after the drop of 4.2% experienced in 2020. EUROFER said “Growth was fuelled by residential investment, 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 programmes 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.EUROFER said “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. This segment will also be supported by EU-wide public policies. Their effects have become increasingly uncertain and difficult to quantify, though, in light of the recent deterioration of the economic outlook due to the war in Ukraine and persisting supply chain issues. Nonresidential construction paid the highest toll to the pandemic in 2020 and also partly in 2021 with increasing vacancy rates, a trend that may continue as tele working has remained rather common in the post-pandemic scenario. The subdued business investment outlook remains unfavourable to investment in non-residential projects in the near future. The outlook for 2022 shows moderate growth of 2.3% which will further ease in 2023 to 1.5%.”
