After contracting in 2024 and stagnating in 2025, Europe’s construction sector is poised to expand again. Rising contractor confidence, a rebound in housing permits and continued infrastructure investment are combining to support a modest recovery in 2026. 2026: Growth returns Construction output across the EU is forecast to rise by 1.5% in 2026. That follows a 1.5% decline in 2024 and flat growth in 2025. While the turnaround is gradual, sentiment indicators are improving. The EU construction confidence index, though still negative, rose to -3.3 in December — its strongest reading in more than ...
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