08 Jul 2020
Posted in Construction
European construction industry expected to recover in second half of 2020, says GlobalData
As the economy reopens across the EU and data from Eurostat points to an improvement in construction industry confidence;
Moustafa Ali, Economist at GlobalData, a leading data and analytics company, offers his view:
“COVID-19 lockdown measures coupled with the virus outbreak led to severe disruption in construction output across the EU between March and May, causing consumer confidence to fall. However, now that those measures are being eased, Eurostat’s construction confidence index, which is based on results from surveys on the current economic situation and the expectations about future developments in the sector, increased in June to -14.6 points following a record low in May of -19.6.
“These results are in line with GlobalData’s anticipation of a recovery in the second half of the year, an outcome that depends on a broad range of factors, most notably the avoidance of a second wave of infections across the continent. Even under this positive scenario, GlobalData expects construction output in Western Europe to plummet by 8.1% in 2020 and in Eastern Europe a fall of 3.3% is predicted. The construction industry has been among the worst hit industries amid the COVID-19 crisis, but there are hopes for a strong rebound in the second half of the year, particularly if governments across the region can accelerate investment in the infrastructure sector.”