Manufacturing Sector, Construction Spending Grow

The Markit/CIPS construction purchasing managers index (PMI) rose to 59.1 last month – its highest level since September 2007 – from 57.0 in July, staying far above the 50 threshold for growth for a fourth month. Economists polled by Reuters had expected a slight slowing in the pace of growth. While fears persist that Britain is flirting with a new housing bubble fuelled by government stimulus, the PMI showed residential building output picked up at the fastest pace since June 2010. Analysts have warned that without growth in housing construction, government help to ease buyers’ access to the market may just end up pushing property prices higher. The PMI also showed civil engineering construction enjoyed its best month since September 2007. “The latest construction PMI figures are yet another indication that the UK economy has performed impressively over the summer months,” said Tim Moore, senior economist at Markit. “A steep upturn in civil engineering activity suggested that public sector demand has joined residential building as a key driver of construction output growth during August.” Construction was the biggest drag on Britain’s gross domestic product between January and March but returned to growth in the second quarter.

Construction in Western Europe – Key Trends and Opportunities to 2017

Scope This report provides a comprehensive analysis of the iron and steel construction market in Europe: – Historical (20082012) and forecast (20132017) valuations of the iron and steel construction market in Europe – Breakdown of values at country level (26 countries) – Analysis of key events and factors including regulation, cost management, funding and pricing – Detailed profiles of the leading iron and steel companies in Europe Reasons To Buy – Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies – Assess market growth potential at a micro-level via review data and forecasts at category and country level – Understand the latest industry and market trends – Formulate and validate business strategies by leveraging our critical and actionable insight – Assess business risks, including cost and competitive pressures Key Highlights – According to the European Commission, Europe is the world’s second-largest steel producer, accounting for 11% of the world’s total steel output and employing 360,000 people. The continuing economic uncertainty in Europe adversely affected the iron and steel market, and directly impacts the construction and automotive industries. – Russia is the largest iron and steel market in Europe; it accounted for 17% of the European iron and steel market in 2012. The Russian construction industry recorded a CAGR of 3.55% during the review period. Realizing the importance of modernizing infrastructure to achieve long-term growth, the Russian government has announced large-scale investments in infrastructure construction. Consequently, the Russian iron and steel construction market registered positive growth during the review period.

Construction in Brazil – Key Trends and Opportunities to 2017

The government will release its August employment report on Friday. Economists forecast employers added 180,000 new jobs last month after hiring 162,000 workers in July. Manufacturing has been hurt this year by cuts in government spending and weaker global demand, causing the sector to shrink in May. But sizable increases in activity in July and August are adding to economists’ views that U.S. goods-producing companies are finding their footing as the year wears on.

The Iron and Steel Construction Market in Europe – Key Trends and Opportunities to 2017

Scope This report provides a comprehensive analysis of the construction industry in Brazil: Historical (2008-2012) and forecast (2013-2017) valuations of the construction market in Brazil using the construction output and value-add methods Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services) Analysis of key construction industry issues, including regulation, cost management, funding and pricing Assessment of the competitive environment using Porter’s Five Forces Detailed profiles of the leading construction companies in Brazil Reasons To Buy Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies Assess market growth potential at a micro-level via 600+ time series data forecasts Understand the latest industry and market trends Formulate and validate business strategies by leveraging our critical and actionable insight Assess business risks, including cost, regulatory and competitive pressures Evaluate competitive risk and success factors Key Highlights Overall construction industry output valued BRL398.5 billion (US$204.5 billion) in 2012 recording a CAGR of 13.16% during the review period. The industry is projected to record a CAGR of 8.67% over the forecast period and value BRL603.8 billion (US$309.9 billion) in 2017. Inflated operational costs are associated with doing business in Brazil, making the country’s goods and services more expensive. This is referred to as the “Brazil Cost”. Excessive bureaucracy, high levels of corruption within the public sector, high labor costs and taxes undermine confidence and industry competitiveness. Brazil’s infrastructure is currently in an under developed state and this poses a key challenge to the development of the country’s industrial sector.

The residential construction market is projected to record only a marginal growth of 0.1% in 2013 but is expected to rebound in 2014. Infrastructure construction accounted for 22.3% of the overall construction industry output in 2012. Countries across the region have invested heavily in infrastructure construction, and while investment has slowed since the financial crisis, it remains high. Large investments in rail infrastructure development in most Western European countries will see rail infrastructure construction record the fastest growth of all infrastructure construction categories over the forecast period. All countries in the region are also committed to increasing the share of renewable energy in total energy consumption, and the category is set to receive healthy support.

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