Why We Expect Higher Profit Margins In European Construction

ING Economic and Financial Analysis5.22K FollowersFollow5ShareSavePlay(9min)CommentsSummaryDespite lower construction activity and rising building material and wage costs, European builders have kept margins stable for some years.If energy prices remain moderate despite the Middle East conflict, we expect further profit gains as capacity constraints increase.Construction volumes are expected to rise further, leading to more undercapacity, allowing contractors to raise sales prices. Sergei Dubrovskii/E+ via Getty Images By Maurice van Sante, Senior Economist Construction & Team Lead Sectors As economists, we tend to focus primarily on production volumes – how much a sector produces, builds or delivers. Profitability often receives less attention, even though it is justThis article was written byING Economic and Financial Analysis5.22K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.