(27.12.2023) Construction activity has slightly rebounded in the third quarter of 2023. The industry records a slight increase of 1.7% on a yearly basis, thereby reducing the deficit for the first three quarters to -4.6%, according to the Swiss Entrepreneurs' Society (SSE).
Between July and September, order entries increased by 4.1% to reach a value of 5.7 billion francs. The order backlog also slightly improved, rising by 1.5% to 15.5 billion over an eight-month period on average. This relatively favorable economic situation provides some security margin for companies in the sector, notes the SSE.
Formerly published in collaboration with Credit Suisse, the SSE's construction index predicts a 1.5% increase in the industry's turnover in the fourth quarter of 2023 compared to the same period a year earlier. The annual result in 2023 is expected to amount to 23.3 billion francs in nominal value, a figure comparable to the previous year. After adjusting for inflation, however, actual activity is expected to remain slightly lower than that of 2022. Therefore, current data for the entire fiscal year 2023 suggests a stagnation in construction activities.
The cost of materials, which has sharply increased in recent years, is expected to stabilize in 2024. However, it is anticipated that the demand for construction work will weaken next year, particularly due to the rise in interest rates, which increases mortgage borrowing costs. In response to this situation, the SSE calls on public authorities to work towards stimulating the construction of new housing, particularly through increased market liberalization.
Last modification 27.12.2023
