17 April, 2018 Resources

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.

Want to know how Coface can help your business know more and grow more?

Get in touch About us

Related resources

Resources

Grow your business safely

Focus on sustainable growth. This is indisputably a tough time for business. Experts believe it will take years for the economy to recover from the shock of the pandemic and lockdown while there is continued uncertainty

02 December, 2020

View Resource
Resources

ExpressECO

The COVID-19 pandemic has contributed to a unique set of circumstances weighing on the world economy, notably in terms of political risk. Julien Marcilly, Coface’s Chief Economist, presents some of our predictions for 2021,

27 November, 2020

View Resource
Resources

Country & Sector Risk Barometer: Q3 2020 Quarterly Update

Similar to last quarter, the uncertainties surrounding the forecasts presented in this barometer are very high. They are primarily linked to the global health situation: since June, the pandemic has continued to gain momentum.

01 October, 2020

View Resource

SEE OUR NEWS HUB FOR MORE INFO

Keep your finger on the pulse with CofaNews

Sign up to CofaNews for the latest industry and economic news, exclusive invites and lots more.