Construction Confidence Report - H1 2021

Globaldata’s Construction Confidence Report - H1 2022 report provides key analysis on the construction confidence index, economic impact index and comprehensive coverage of the prospects of sales in the coming six months.

Confidence levels among construction industry executives have worsened amid heightened geopolitical risks following Russia’s invasion of Ukraine, which has exacerbated global supply disruptions and intensified upward pressures on prices of energy and key materials. Confidence levels had been on a sharp improving trend since the second half of 2020, but the Construction Confidence Index (CCI) dropped to 57.7 points in H1 2022 falling from 65.7 points in H2 2021, according to GlobalData’s latest confidence survey (conducted in May/June 2022). The index had plummeted to 37.8 points in Q2 2020 amid the severe contraction in economic activity amid widespread restrictions imposed to contain the spread of COVID-19.

View our report for a comprehensive summary of Construction Confidence Report - H1 2022 from an analyst’s perspective:

The Economic Impact Index (EII) at the global level has declined, dropping to 42.6 points in the H1 2022 survey from 50.1 points in the H2 2021 survey. With the score again dropping below the 50-point mark, it indicates that respondents perceive that the economic performance at the global level is having an overall unfavorable impact on the industry. Asia was the only region to record a score above the 50-point mark in the latest survey, at 51.2, but this was down from 54.2 in the H2 2021 survey. Given the impact of Russia’s invasion of Ukraine on the region’s economy and trade, it is unsurprising that the EII in Eastern Europe has plummeted, dropping to 29.3 points in H1 2022 from 51.3 in the previous update. Rising interest rates in response to the intensifying inflationary pressures is dampening consumption and investment activity, resulting in a worsening economic outlook across most regions.

Access key analysis of the Construction Confidence Report - H1 2022:

• Sales: Despite the dip in confidence and the worsening economic outlook, sales prospects remains positive. In the latest survey, the balance of responses still in favour of an increase in sales in the coming six months

• Headcount: Given the increasingly uncertain outlook and downside risks to growth stemming from rising energy costs and high inflation, the share of respondents expecting no change in headcount in the coming six months remains relatively high, at 33%

• Prices: The jump in construction material prices during 2021 was driven primarily by the surge in construction activity following the severe downturns in 2020, combined with disruptions to supply chains and high shipping costs. The upward pressure on prices in the first half 2022 has been exacerbated by the Russia-Ukraine war, which has contributed to a sharp rise in energy prices and further disruption to the trade in key materials, including steel products

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