Europe Facing Rising Growth in Construction Workloads
NEW research has revealed that construction activity in Europe continues to increase, with positive output growth being reported within all sectors. The findings were revealed in the RICS Global Construction Monitor (GCM), with feedback from survey respondents showing a ‘pickup’ in activity across virtually all European markets. The RICS’ European Construction Activity Index rose to +34 in Q2 from +16 in Q1 – in stark contrast to the reading of -25 at this point last year. Portugal and the Netherlands both recorded a reading of over 50, while the UK, Germany and Ireland all registered ‘comfortably stronger’ readings in Q2 compared to Q1. Expectations regarding the next 12 months have moved further into growth territory, driven by private housing and infrastructure projects. Employment in the construction sector in Europe is also expected to grow, with a net balance of +28% of respondents projecting an increase in employees over the year ahead. Respondents, however, were less optimistic about profit margins due to issues such as escalating material cost pressures. Simon Rubinsohn, chief economist RICS, said, “The rebound in construction workloads continues to gain ground in Europe with strong housing markets playing a key role in supporting residential development. Moreover, with the cost of money expected to remain close to zero, there is little reason to believe that this key driver of activity in the industry will diminish in importance over the next twelve months.”
Tags : INTERNATIONAL construction growth Europe rising Workloads