AKC News // Irish building hits European growth prospects

Source: RTÉ Business:

A slowdown in new residential construction in Ireland has led to construction forecast group Euroconstruct reducing its overall output figures for the whole of Europe for next year.

Euroconstruct now only expects 1.4% growth in European construction next year. In June, the group said it expected 1.8% growth in output next year, following nearly 2% this year.

The latest figures from the construction forecast group show most of the reduction is due to slower new residential construction, with Ireland showing the biggest forecast decline of 22%.

Output in Western Europe is expected to increase by 1%, reduced from a forecast of 1.5% in June. But the Eastern European market remains strong, with output forecast to rise by 9.2% in 2008. This figure has been moved up from a 7.8% forecast in June.

A note from Davy Stockbrokers today says that the upward revision of forecasts for Eastern Europe is good news for Irish firm CRH. It also says that companies involved in the repair and maintenance sector, like Grafton, are well placed to take advantage of the forecast 7.3% growth in the RMI sector in 2008.

Davy says strong growth in non-residential markets across Europe is positive for companies such as Kingspan.

Date : 26-11-2007