Continued Decline of European Construction Activity in 1993

Following the boom of the late eighties construction activity has slackened markedly in recent years. In 1992, output volume fell 1 percent and will further decline by a projected 1.2 percent in 1993. The U. K. construction industry was the first to be caught by the recession, which subsequently extended to France, Spain and Italy. In the Scandinavian countries the construction sector is in a particularly critical state. In Austria, the sector enjoyed continued strength until mid 1992, in which year output growth exceeded that of all other European countries. Most countries expect stagnation or decline of construction output in 1993. In Austria and Germany, while also losing momentum, output will still rise due to lively demand for new housing.