European construction outlook revised down for 2023

The outlook for Europe in 2023 remains challenging and unpredictable after a better than expected 2022, according to CIC Market Solutions. Citing recent data from Euroconstruct, the materials, construction and infrastructure sector in the EU-15 plus four Eastern European countries is now expected to expand by just 0.2 per cent next year, but this has been revised down from growth of 2.3 per cent forecast in June 2022. The UK market is expected to be particularly hit with a decline of 0.4 per cent in 2023. 

New residential construction across Europe is forecast to contract by two per cent in 2023, compared to the previous year, driven by a sharp downturn in Italy. Maintenance and rehabilitation, which saw strong growth in 2021 and 2022, is expected to fall by 0.7 per cent in 2023. Civil engineering is the only bright spot with growth of a predicted 2.9 per cent next year on the back of ongoing stimulus packages, although even this has been revised down from an estimated 3.9 per cent.