Results of April’s CE Barometer survey underlined the strong sense of optimism in the European construction sector that was first seen in February and was sustained in March.
February saw confidence in the sector hit its highest levels since the start of the global financial crisis, with the CE Climate, a broad measure of sentiment, reach a balance figure of +36.4%. The balance figure is the percentage of positive responses, minus the number of negative ones.
March saw this measure fall back a little, but it still stood at a high level. However, there was a rebound in April, with the CE Climate moving back up to a balance figure of +37.7%.
This was driven by increased confidence about the future. A huge balance of +57.6% of respondents said they thought activity would be higher in a year’s time than it was in April. You would have to go back to the height of the boom years in early 2007 to find this level of confidence in the European construction sector’s future prospects.
In addition to this, a balance of +31.5% of respondents said activity was better in April than a year previously. Again, this was about the same as February’s result, after a dip down in March.
Meanwhile, a balance of +23.9% of respondents said activity levels were better in April than a month previously., This month-on-month measure of confidence has been around this level throughout February, march and April.
This all reinforces the view that the European construction sector is entering a period of sustained growth. As the ‘clock’ diagram illustrates the sentiment for a relative boom is very strong. However, it is important to interpret this correctly. The clock only indicates which way the market is heading, and how many people share that view – the length of the arrow is the strength of the sentiment. It does not indicate how big market growth will be.
The survey, which takes just a one minute to complete, is open to all construction professionals working in Europe. The CE Barometer survey is open from the 1st to the 15th of each month on our website. Full information can be found at www.cebarometer.eu
Click here to read last month's CE Barometer results.