New figures from GlobalData show that the construction sector in Western Europe is healthier than in most other regions and is continuing to improve.
Western Europe has received an overall score of 0.7 on GlobalData’s March 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 which is continually updated over time. These are then weighted by the value of each project in order to come to overall scores for countries, regions and sectors.
That score puts Western Europe in 3rd place out of 11 regions, and is an increase on its score from January 2022 (0.57) when it ranked in 7th place.
One reason for Western Europe's relatively good performance in the index is its industrial sector, which scores 0.94, putting it in 1st place out of 11 regions worldwide.
Western Europe's commercial & leisure sector, by contrast, has performed somewhat worse, with a score of 0.48 (putting it in 5th place globally).
Within Western Europe, construction projects are proceeding with fewest obstacles in Austria, which scores 0.96 in the index. The situation in Portugal, however, is somewhat less positive with a score of 0.24.
The improving health of the construction pipeline in Western Europe is partly due to the resolution of issues in the region's industrial sector, which has seen its score on GlobalData's Construction Project Momentum Index rise from 0.49 in January 2022 to 0.94 in March 2022.
The construction sector is also seeing fewer and fewer problems in Norway, which has seen its score on the index go from 0.17 in January 2022 to 0.95 in March 2022.
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 reducing of the project's scope.
Events that can increase a project's score on the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.