Global and local trends in the construction sector

Download the Document

Construction Sector Risk Report

The background

In advanced countries the construction industry has benefited from low inflation and interest rates. Businesses are doing well in general with insolvencies down, although Brexit-related doubts make the UK situation less clear. Globally housing demand is rising, driven by population growth and urbanisation, plus relatively low-cost borrowing. In the USA, however, interest rates are starting to rise, making borrowing more expensive. Conditions are becoming more difficult in China, and also in the Middle East, where oil prices remain low.

 

Coface Regional Sector Risk Assessment

The future

The outlook for 2018 is for property prices to continue rising in developed countries, although over-valuation is a problem in New Zealand, UK, USA, France and Sweden. In fact Coface analysts’ headline prediction is that average selling prices globally will rise to pre-2008 financial crisis levels during 2018. The US industry is likely to benefit from President Trump’s promised boom in infrastructure projects.

Everyone involved in the construction sector knows how volatile it can be, because it is so dependent on external factors ranging from the economy to the weather. That’s why protecting the business from bad debt with Coface credit insurance is such a wise precaution.

Sign up for the latest news

Resources

Country Risk Assessment Map – Q2 2018

Our latest Country Risk Assessment Map for 2018 puts 160 countries under the microscope. Understand business default risk worldwide.

View Resource
Resources

Agrofood Sector Risk Report

Generally, worldwide food prices stabilised in 2017, having been exceptionally high before. For example, sugar prices, always volatile, fell sharply in 2017 after steep rises in the previous year.

View Resource
Resources

Transport Sector Risk Report

The recent trend has been for a sustained drop in prices being paid for transport around the world. But strong demand for air transport, which grew by 4% in 2017, is the big story in global transport.

View Resource