Western Europe has received an overall score of 0.57 on GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData's database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts western Europe in seventh place out of 11 regions, and is a decrease on its score from December 2021 (0.78) when it ranked in third place.
One reason for western Europe's relatively poor performance in the index is its infrastructure sector, which scores just 0.29, putting it in tenth place out of 11 regions worldwide.
Western Europe's industrial sector, by contrast, has performed somewhat better, with a score of 0.9 (putting it in third place globally).
Within western Europe, the problems in the construction sector are most significant in Portugal, which scores just -0.05 in the index. The situation in Switzerland, however, is somewhat better with a score of 1.9.
The Construction Project Momentum Index
GlobalData's Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project's score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project's score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project's scope.
Events that can increase a project's score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
As well as a global overview of the Construction Project Momentum Index, Investment Monitor has broken down our coverage on a regional basis: