Europe and the US to slowdown in 2008 but Eastern Promise continues to deliver.
In 2007, Ireland saw a moderation in the rate of growth of it’s construction market and a consequent fall in the rate of construction inflation. The slowdown was centered on a fall in the number of residential completions which peaked in 2006, fell in 2007 and is expected to fall further in 2008.
Despite this, the fact that there was market growth in 2007 reflects the strength of ongoing investment in the industrial and commercial sectors as well as the significant investment contribution to construction output from the National Development Plan which is projected to increase year on year for the short to medium term.
The UK market driven by demand in the south east
of England in particular is expected to remain strong in 2008 as
is demand in Eastern
Europe .
The most recent data available for labour costs in 2006 and 2007 shows dramatic
increases in the cost of labour in the eastern European economies which
dramatically illustrates the link between supply and demand, the effects of
which have yet to be seen.
Demand in the older developed European economies and the US is expected to slow in 2008 with forecasters referencing the slowdown in US residential completions and the volatility in world stock markets as a cause for concern. Overall however global demand levels are expected to remain relatively robust with continued strong growth in the new eastern tiger economies and in particular China and India albeit at slightly reduced growth rates than those recently experienced. 2008 may also see increased demand from Russia and South America which could contribute to continuing the recent upward trend in the price of commodities and the resulting inflationary impact on international costs.
International Index of Construction Costs
2007
