According to a report from Aggregate Research, Europe should see a moderate recovery in construction spending in 2016 and 2017. This upturn in spending is predicted in the Committee for European Construction Equipment’s Quarterly Economic Bulletin.
The bulletin reports that support for construction investment should mainly come from the relatively strong growth in household real disposable income, low mortgage rates, and a return to rising house prices.
However, since these factors will continue to be partially offset in some European Union states by high levels of household debt and sluggishness in the non-residential construction sector, the rebound in construction investment should be moderate.
According to European Commission figures quoted in the CECE bulletin, the value of construction industry output among the biggest five European markets in 2015 was: Germany €288.7 billion, France €192 billion, UK €176.8 billion, Italy €162.2 billion; and Spain €66.3 billion.
Edited from source by Joseph Green. Source: Aggregate Research