Continued Downward Trend in European Construction Output, Slight Recovery Expected for 2011

European construction output has been declining since 2008, but forecasters of the Euroconstruct Network expect a slight recovery for 2011. Post-crisis phenomena, such as cuts in public spending, are dampening growth prospects in many countries. Only a few countries, particularly in Central Europe, will manage to reach pre-crisis output levels by 2012. Generally, the construction industry in Central European countries was not much hurt by the crisis and is expected to return to its prosperous growth path over the next years. The main growth driver will be infrastructure investments in civil engineering projects supported by the EU's structural funds. In Western Europe construction output will rise at a very slow pace; the (relatively) best prospects are in the sector of residential construction. This does not apply to Austria, however, where building permits continue to decline. All in all, Austrian construction activity will experience only minor growth rates in 2011 and 2012.