2026: Europe’s timber sector moves from contraction to cautious recovery

 After two difficult years, Europe’s timber market enters 2026 in a different mood. The sharp slowdown that began in 2023 has largely run its course. Construction output remains subdued in many countries, but the pace of decline has eased, and in several markets activity has begun to stabilise. The year ahead is unlikely to deliver a strong rebound. What it may bring is something more modest but important: predictability. Residential construction remains the key variable. Higher interest rates over the past two years pushed housing starts down sharply, particularly in Germany, the Nordics and parts of Central ...