“Question of the month”
25 March 2008
In March CE asked its survey respondents what impact the current low value of the US Dollar was having on their business. Although the devaluation of the Dollar over the last few years has been dramatic, the effect does not seem to have been felt in the European construction sector.
Given that it is an industry that is generally localised it is unsurprising that the majority of respondents – 53% – said the current low value of the US Dollar was having no effect on their businesses. Having said that, those respondents that expressed an opinion one way or another felt it was having a detrimental effect, with 26% saying a weak Dollar was bad for business, compared to 21% who said it was good.
But this is not to say currency movements outside Europe do not have an impact, particularly in the more globalised parts of the construction industry. One respondent from an equipment manufacturer in Finland added the comment, “The Dollar has no influence, however the Japanese Yen is killing us.”