Europe's Construction Industry in Recession

Since 1991 the construction industry in Western Europe has suffered a decline, mostly a result of the world-wide slowdown in econmic activity. In 1991 as well as in 1992 the volume of production decreased by ½ percent, after a vigorous increase at the end of the eighties. The steepest decline was recorded for business construction and the construction of new dwelling. Construction activity in Germany, Austria and Spain was rather robust compared to other European countries. In Austria, the demand for construction continued to rise strongly. With the volume of construction expected to expand by 5 to 5½ percent in 1991 and 4 percent in 1992, Austria's construction sector ranks among those with the highest growth rate in Europe.