According to the Economic and Steel Market Outlook 2024-2025/Q2 2024 Report from the Economic Committee of the European Steel Association (EUROFER), in the fourth quarter of 2023 construction output in the EU decreased by 0.9 percent year on year, due to the increase in material prices, labor shortages in certain EU countries, growing economic uncertainty and significantly higher interest rates. This negative trend is expected to continue throughout this year, mainly due to the impact of high interest rates and higher mortgage rates on housing demand despite the easing in the monetary policy.
In the full year, output in the construction sector declined by one percent year on year, compared to the previous forecast of 2.1 percent.
According to EUROFER, the sector is expected to experience a more pronounced recession of 1.9 percent in 2024. However, the association forecasts a recovery of 2.7 percent in 2025.