Civil Engineering Projects Gain in Importance in Europe

Over the last two years the construction industry in Western Europe was an integral part of the economic upswing. The construction volume rose by 5.8 percent in 1988 and by 4.6 percent in 1989. The upswing in construction activity will continue, though slightly weakened, into 1990 with a rate of 2½percent. In 1989, the fastest growing market category was non-residential construction and civil engineering; residential construction and renovation and modernization follow in second place. New housing starts are expected to decline in 1990 in European countries, largely as a result of higher interest rates. The mid-term outlook is for an expansion in civil engineering projects; in 1990 growth in this sector is expected to exceed that in residential and non residential construction in Western Europe.