English, Article edition: Further Weakening of Construction Activity in Western Europe Margarete Czerny

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/149509
Physical Description
  • article
Language
  • English

Edition details

Title
  • Further Weakening of Construction Activity in Western Europe
Author
  • Margarete Czerny
Physical Description
  • article
Notes
  • The prospects for 1996-97 for the construction sector in Western Europe are not encouraging: having briefly recovered from recession in 1994 – with real output expanding 3 percent – growth of 1.6 percent in 1995 clearly lagged behind that of overall GDP. Projections are for a further slowdown in 1996-97, to 1.1 and 0.9 percent, respectively. Major reasons for the modest growth outlook are the generally sluggish advance of GDP, cuts in government spending, and the slackening demand for residential buildings. A common feature among Western European countries has been strong investment in renovation and adaptation of old structures, and demand promises to stay lively in the near future. Renovation works claim a share of over 30 percent in total construction activity, and it is likely to rise in the future at the expense of new building. In East-Central Europe, the construction industry managed to overcome the transformation crisis in 1995 and may expect stable growth of 6 percent p.a. in 1996-97. Against the general trend in Europe, the Austrian construction sector experienced solid growth in the first half of the decade. In the course of 1995, however, public orders fell markedly – for budgetary reasons; and also residential building, the mainstay of construction activity and a major contributor to overall growth, lost considerable momentum towards end-1995. Total construction output in Austria remained constant in 1995 and is expected to decline by 1 percent in 1996 and maybe by another 3 percent in the following year. Marking the pace of the cyclical downturn, the sharp decline in new construction orders since mid-1995 is eye-catching. Results from the latest WIFO business survey are the worst since the early 1980s, the time of the last recession in the construction sector. Two-thirds of all firms report a massive decline in new orders. The consequences are becoming apparent on the labor market, where seasonal unemployment will hit a new peak. The recently announced infrastructure programme of the Federal government may provide fresh stimulus for construction investment. New incentives for renovation works which are highly labor-intensive should mitigate the adverse trend in the Austrian construction industry.
  • Weitere Abschwächung der Baukonjunktur in Westeuropa; Further Weakening of Construction Activity in Western Europe
  • RePEc:wfo:monber:y:1996:i:2:p:117-121
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment