Increasing renovation activity puts Europe's construction industry on moderate growth courseSelected results of the Euroconstruct Winter Conference 2005

According to the most recent growth forecasts for construction activity in the 19 member countries of the Euroconstruct network, an increase of about 1½% is expected for European construction output in 2006. The upward trend is likely to gain momentum in 2007 and 2008 (close to 2% in both years). This is one of the results of the 60th Euroconstruct Conference taking place in Barcelona at the end of 2005. Construction growth is supported primarily by Great Britain and Spain, although - with the exception of France and Poland - significant absolute growth contributions are again provided by the Netherlands and Germany after many years of declining construction activity. New residential construction slows the pace of expansion during the entire forecasting horizon, whereas non-residential building construction and especially civil engineering may achieve markedly higher and rising growth rates. In the forecasts for 2006 and 2007 and in the outlook for 2008, both segments of building constructionare expected to expand renovation activity, which will support and stimulate aggregate activity. According to the revised forecasts, the construction sector will contribute substantially to aggregate economic growth in the forecasting period, but its growth will be lower than that of the aggregate economy.