Brussels based the European Steel Association EUROFER in latest Economic and steel market outlook 2022-2023 has said that the positive trend in construction output seen throughout 2021 continued up to the first quarter of 2022, at a higher rate than the previous quarter at 16%, after 6.6% over the fourth quarter of 2021. The figures seen since the first quarter of 2021, in particular, reflected the continued quarter-on -quarter improvement in the construction activity and the vigorous boost provided to the sector across the EU by governmental support schemes at EU and national level. This has especially benefitted the private residential and civil engineering subsectors. Only over the fourth quarter of 2021 growth in construction output lost some speed due to ongoing problems along the global supply chain, which resulted in increasing scarcity of construction materials - as well as construction workers' shortage in many EU countries.In line with real production volumes, in the first quarter of 2022 gross fixed investment in construction increased by 4.7% YoY. This was the fifth consecutive quarterly increase 1.8% in the preceding quarter. Growth was fuelled by residential investment 4.9%, after 1.6%, despite the expectation of higher future mortgage rates due to possible monetary policy tightening in connection with rises in government bond yields. Growth continued to be boosted also by generous housing and renovation supporting schemes in place in many member states. Positive developments were seen also in 'other construction' investment 4.4%, after 2%, particularly in civil engineering. Its expansion should continue during the second half of 2022, as governments have been using it since the COVID-led recession of 2020 as a cyclical tool to bolster recovery. However, the impact of these publicly-funded construction schemes is expected to ease considerably due to multiple downside factors supply chain issues, war in Ukraine etc, including the shortage of construction materials which is increasingly becoming a source of concern.EUROFER said “The outlook for 2022 forecasts higher growth than previously estimated at 5.3% vs 2.3%, thanks to very positive developments over the first half of the year. However, this trend is expected to ease considerably in 2023 by 0.6%.”
Brussels based the European Steel Association EUROFER in latest Economic and steel market outlook 2022-2023 has said that the positive trend in construction output seen throughout 2021 continued up to the first quarter of 2022, at a higher rate than the previous quarter at 16%, after 6.6% over the fourth quarter of 2021. The figures seen since the first quarter of 2021, in particular, reflected the continued quarter-on -quarter improvement in the construction activity and the vigorous boost provided to the sector across the EU by governmental support schemes at EU and national level. This has especially benefitted the private residential and civil engineering subsectors. Only over the fourth quarter of 2021 growth in construction output lost some speed due to ongoing problems along the global supply chain, which resulted in increasing scarcity of construction materials - as well as construction workers' shortage in many EU countries.In line with real production volumes, in the first quarter of 2022 gross fixed investment in construction increased by 4.7% YoY. This was the fifth consecutive quarterly increase 1.8% in the preceding quarter. Growth was fuelled by residential investment 4.9%, after 1.6%, despite the expectation of higher future mortgage rates due to possible monetary policy tightening in connection with rises in government bond yields. Growth continued to be boosted also by generous housing and renovation supporting schemes in place in many member states. Positive developments were seen also in 'other construction' investment 4.4%, after 2%, particularly in civil engineering. Its expansion should continue during the second half of 2022, as governments have been using it since the COVID-led recession of 2020 as a cyclical tool to bolster recovery. However, the impact of these publicly-funded construction schemes is expected to ease considerably due to multiple downside factors supply chain issues, war in Ukraine etc, including the shortage of construction materials which is increasingly becoming a source of concern.EUROFER said “The outlook for 2022 forecasts higher growth than previously estimated at 5.3% vs 2.3%, thanks to very positive developments over the first half of the year. However, this trend is expected to ease considerably in 2023 by 0.6%.”
