CE Barometer November 2008: Gloom deepens
By Chris Sleight18 November 2008
Sentiment on the European construction industry slipped lower in November, with results of the month's CE Barometer survey indicating stronger signs of a recession.
A balance of 44,1% of respondents said activity fell month-to-month compared to October. This negative balance of -44,1% was noticeably deeper than the -27,5% for October and was the lowest recorded in the Barometer's two-year history. The figure is calculated as the percentage of respondents giving positive responses, minus the number giving negative answers. October was the fifth consecutive month of declines in current activity.
On future sentiment, again a record number of respondents said they expected activity to be lower in a year's time compared to now. The balance figure of -32.6% was the strongest indication yet of a weak future outlook, and it was fifth consecutive month that sentiment about the future has been negative.
A further indication of falling activity was that a balance of -44,4% of respondents said activity was lower last month than in November 2007. This all meant that the ‘CE Climate' - an amalgamation of results from all three of these questions hit a new low of -40,4%. Another double-digit fall from October's figure of -28,1%.
Reading the clock
The angle of the arrow gives an indication of the point in the cycle the European construction industry is currently at. In November activity fell compared to the previous month and sentiment about the future was also negative, indicating a recession. The length of the arrow indicates the strength of the sentiment.
CE would like to thank all those that took part in the August survey. It was completed by more than 300 construction professionals in 29 countries around the region.