Swedish households receive construction industry to wind up considerably. It is mainly the production of new housing rising rapidly.
The next year, however, dampened developments in both residential and construction market is slowing down.
according to a new economic forecast from the Swedish Construction Federation.
Swedish economy grew moderately last year. What has always kept the momentum was households through increased consumption expenditure and a very strong demand for new housing helped to keep the wheels running. Households continue to set the pace for some time yet, but the future is increasing foreign trade impact. The world economy begins to recover and get a boost in the form of falling oil prices.
Overall, the construction investment with strong 12 percent in 2014. The increase in housing production makes that investment will continue to grow by 8 percent this year. Residential construction has set off in earnest the last two years and lift to a level of new construction that seems to correspond to the households stamina to ask. The number of housing starts increased by over 9000 to about 40,000 last year.
- Housing investment rose sharply last year and an important explanation is that households have become financially stronger. This driving force behind the recent increased demand for new housing, are likely to decline as a result of mandatory amortization requirements and higher income taxes, says Johan Deremar, an economist Swedish Construction Federation.
All sub-sectors of the construction grows in years. Next year, however, civil engineering investments fall slightly in both the private and public sectors.
- There are challenges to overcome. It’s that construction market declines, largely due to public investment in roads, but also reduces private investment in the energy and telecom goes down.
In 2014, the number of employed in the construction industry to an average of 311,100 people per month. This represents a decrease of 500 persons compared to the prior year. Employment is expected to remain almost unchanged, but in 2016 it rises by more than 2 percent.
Johan Deremar summarizes the local differences in the construction market:
- Norrbotten is fainter because the mining industry has increasingly tougher. Västerbotten, but the university city of Umeå as the engine goes like a train. We can also talk about Skåne revenge. It starts to move properly in the South. Gothenburg, Stockholm, Uppsala and Mälardalen going well because a lot of housing construction occurs in these regions.
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