Euro area construction activity rebounds in Q2 2018, construction output to maintain moderate uptrend
Source: FxWire Pro - Commentary / 18 Jul 2018 16:50:40 America/New_York
Euro area construction activity recovered in the second quarter, after the weather-related softness seen in the prior quarter. After April’s revised rise of 1.4 percent sequentially, the most in over a year, construction sector output rose a further 0.3 percent sequentially in May, to a level 1.6 percent higher year-on-year.
This took the average level in the initial two months of the second quarter 1.1 percent above the first quarter average, with growth seen in both building and civil engineering activity on this basis. However, at the country level, growth has been focused mainly on Germany, where the average level in the initial two months of the second quarter was 2.5 percent above than in the first quarter.
“Looking ahead, fundamental drivers for the sector remain favourable, with steady (if not scintillating) economic growth, higher property prices, rising bank loan supply and demand, and historically low interest rates all supportive of construction activity”, stated Daiwa Capital Market Research in a report.
And in spite of the recent softening of momentum in other sectors, with surveys implying that sentiment and order levels continue to be highly elevated by historical standards, construction output is expected to maintain its moderate uptrend, led by Germany, in quarters ahead.
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