Major infrastructure projects will contribute to growth of between 3% and 5% in France's construction sector this year, according to Evolis. The French construction industry group says that the sector experienced strong growth of 4.8% in 2017, followed by a slower rate of 3.1% in 2018. Evolis says that, within an overall trend of growth, there are differences depending on the industry segment. The public works sector is expected to continue to rise in 2019, at a rate of 10%. Local government spend
Major infrastructure projects will contribute to growth of between 3% and 5% in France’s construction sector this year, according to Evolis.
The French construction industry group says that the sector experienced strong growth of 4.8% in 2017, followed by a slower rate of 3.1% in 2018.
Evolis says that, within an overall trend of growth, there are differences depending on the industry segment.
The public works sector is expected to continue to rise in 2019, at a rate of 10%. Local government spending, which accounts for 41% of overall public output, will be one of the main growth drivers. In addition, major infrastructure projects will continue to boost activity, including the Greater Paris project, the French ultra-high-speed broadband plan and the French motorway plan.
Overall housing construction activity is expected to remain more or less stable with a possible change of 0.2%, while repair and maintenance activity is forecast to remain positive and show a 0.3% increase.
Evolis predicts that non-residential activity growth will accelerate, with an increase of 6.4%. The impact of growing e-commerce is changing the retail sector, which saw permits fall by 22.5% in 2018, and the construction of retail stores is expected to decline by 9.5% in 2019. Evolis adds that administrative building projects will probably also remain in a slump, while the other market segments should remain strong in 2019. Industrial buildings should see a rise in 2019, by almost 20%, while the warehouses and the offices should increase by additional 35% and 1% respectively.
