European contractors stuck in neutral as growth stalls in 2025
Although Europe faces significant housing shortages, residential construction is unlikely to rise this year.
Permits for new homes are increasing, but growth remains slow. The infrastructure sector continues to grow, but significant gains from the new NATO agreement are unlikely.
2025 growth on pause
We expect zero growth in the EU construction sector this year. This is a small downgrade compared to our previous forecast. While some modestly positive signals are beginning to surface, they are nothing to write home about. Contractors remain pessimistic, though the situation appears to have bottomed out.
