The construction sector entered recession in Q3CY’22 and saw its fifth consecutive quarterly drop (-1.2%, after -3.4% in Q2) in Q3CY’23. The positive trend in SWIP, started after the pandemic, continued until Q2CY’23 in spite of soaring energy prices impacting production costs, component shortages and lower output that took their toll on total production activity in steel-using sectors in the second half of 2022. But, deterioration of the economic and industrial outlook in the EU – particularly due to high inflation and the subsequent interest rate hike by the European Central Bank (ECB) – had limited impact on steel-using sectors’ output so far. The construction sector, accounting for 35% of EU steel consumption, was the only significant exception.
