Building contractors are worried about the economy in nine out of 10 cases. The construction barometer, which measures corporate confidence in the industry, is on the decline. Bouwunie, the federation of SMEs in the building industry, agrees.
In the first quarter, the construction barometer dropped even more, to a new low of 98.5. The construction sector’s economic indicator has been at such a low level since the fourth quarter of 2020, when the financial crisis was at its peak. The barometer remained at 99.9 in the fourth quarter, just below the healthy limit of 100.
According to Bouwunie, building contractors have a much lower opinion of the economy, with nine out of ten expressing serious anxiety. This is primarily due to construction companies’ lower profitability as a result of rising expenses and price pressure.
Because the volume of work is still high, and the order books are generally full. One out of every three construction enterprises is still operational after six months. But, according to Bouwunie, this could alter shortly. “Covid’s uncertainties, the crisis in Ukraine, supply issues, and rising pricing have all had their mark.”