German construction is set for a fourth straight year of boom growth boosted by both very low interest rates and subdued inflation fears, that have been spawned by the Eurozone debt crisis. Meanwhile, in the regional construction sector, seasonally adjusted production fell by 1.4% in the Eurozone (EA17) and by 1.8% in the EU27 in September 2012, compared with the previous month, according to first estimates released by Eurostat, the statistics office of the European Union. In August 2012, production rose by 0.6% and 0.2% respectively.
Compared with September 2011, production in September 2012 dropped by 2.6% in the Eurozone and by 5.8% in the EU27.
In the first nine months of 2012, housing construction in Germany rose by 6.2% compared with the same period a year ago, according to data released Tuesday by Destatis, the German federal statistics office.
New building permits in Germany jumped to 178,100 by the end of September, Destatis said in a statement. There has been a 14% rise in commercial construction, while private home building gained 2.6%.
ZDB, the German construction sector lobby group, said historically low interest rates had fostered a boom in both private home building and commercial construction.
"Although the pace of growth slowed a bit in recent months, the number of new building permits remains at a high level," Andreas Geyer, ZDB chief economist, told Reuters.
Geyer said conditions for further growth in construction are good, considering sturdy employment and income figures, as well as low financing costs in Germany.
ZDB expects overall 2012 revenue in the German construction sector to rise by 2.3% to €94.3bn, with private housing construction due to expand most - - at a forecast rate of 7%.
Monthly comparison: Among the member countries for which data are available for September 2012, production in construction fell in eleven and rose in three. The largest dips were registered in Portugal (-13.4%), Italy (-8.0%), Romania (-4.0%) and the United Kingdom (-3.0%), and the increases in Slovenia (+17.1%), Germany (+2.7%) and Sweden (+1.0%).
Building construction decreased by 2.3% in the Eurozone and by 2.5% in the EU27, after +0.8% and -0.1% respectively in August 2012. Civil engineering increased by 0.7% in the Eurozone and by 0.1% in the EU27, after -0.2% and +2.4% respectively in the previous month.
Annual comparison: Among the member countries for which data are available for September 2012, production in construction fell in twelve and rose in two. The largest drops were registered in Portugal (-18.2%), Italy (-17.8%), Poland (-16.7%), Slovakia (-14.9%) and the United Kingdom (-13.1%), and the increases in Sweden (+4.5%) and Germany (+4.0%).
Building construction declined by 3.2% in the Eurozone and by 6.5% in the EU27, after -0.6% and -4.4% respectively in August 2012. Civil engineering fell by 2.0% in the Eurozone and by 4.2% in the EU27, after -5.3% and -5.1% respectively in the previous month.
There was no data for Ireland.
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