CECE Annual Economic Report 2016
The construction equipment sector saw a single-digit decline (-2.5%) in 2015, primarily attributable to the market situation in Russia. Overall, however, there were encouraging signs of improvements in machinery demand. Building construction equipment performed better than civil engineering equipment, earthmoving and road construction machinery. These are the main findings of the CECE Annual Economic Report 2016.
Even though growth forecasts for the European construction industry has been revised downwards after the Brexit vote, the overall picture still looks positive. Construction investments show the highest growth rate since 2007 at the moment. There are two key features, however: The differences across countries and regions within Europe remains large, and the absolute market level is still far below pre-crisis days.
Industry dynamics haven’t changed, as the third quarter brought double-digit growth for the European industry once more. Except for the UK market and Central and Eastern Europe, all markets saw a continuation of the pick-up. Building construction equipment is still the best-performing sub-sector after nine months of the year, but earthmoving and road equipment are catching up.
The European market is set for double-digit growth in 2016. Together with the Indian market it stands out as the growth engine of the worldwide equipment market. However, uncertainties around the globe remain extremely high. After the Brexit vote shock in the summer, the US Presidential Election outcome brought new uncertainty. This will probably affect the investment climate in the near and medium term future.