Publications

Construction sector‘s financing climate is improving.

In 2015, Sweden expects a modest growth in the consumer durables retail segment.

The Chinese retail market remains highly fragmented due to the large population and differences in consumer behaviour and purchasing power across the country.

Retail insolvencies are expected to increase in Canada in 2015, as many businesses ́ profit margins are under pressure and competition is high.

The US economy is expected to grow 3.1 % in 2015, while unemployment is expected to drop to 5.5 %. Together with improving consumer sentiment, those indicators support higher top-line sales growth.

In the UK, consumer confidence and discretionary income have shown significant improvement over the past 12 months. The overall trend in consumer durables retail performance has been an improving one.

The forecast for Spain ́s economy seems to sustain further consumer durables sales in 2015. However, for some segments growth could be lower, given high purchase levels already seen in 2014.

Despite the still fragile situation, in 2014 Dutch retail trade has benefited from higher consumer confidence, economic growth and improved purchasing power.

German consumer durables retail benefits from the country ́s robust economic performance, with household consumption expected to grow 2 % in 2015 after 1.2 % registered in 2014.

Peru’s economic growth is expected to accelerate in 2015 spurred by lower interest rates, two mega mining projects, strong demand and public investment in infrastructure projects.

In 2015, Colombia’s economic performance is expected to slow down somewhat (to 3.8%) due to lower commodity prices, while robust domestic demand should sustain growth.

In 2015, Chile is forecast to see a decrease in inflation and an increase in economic growth.

Argentina’s economy contracted 1.6% in 2014, and this negative trend is expected to continue in 2015, as exchange and price controls are forcing producers to scale back their activities.

Depreciation of the Euro against the British Pound has made UK products and services less attractive to eurozone buyers.

Italian GDP is expected to grow after three years of contraction. Domestic demand is forecast to stabilise as investments and household consumption are expected to accelerate.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

In 2015 the Mexican construction industry is forecast to grow 4 %.

After a modest growth of 0.5 % in 2014, the construction output in Brazil is expected to grow at more or less the same level in 2015.

A 9 % increase is forecast for the US construction sector in 2015; the vast majority of construction and design firm executives believe the market is stable or growing.

It is expected that construction output growth will continue in the UK in 2015 and also continue to broaden out beyond house building.

While French business insolvencies are forecast to level off in 2015, it is expected that construction business failures will further increase due to the low economic growth forecast for France.

With poor demand, on-going pressure on prices and a high number of insolvencies, the construction sector in Belgium is going through difficult times.

Economic conditions in the Eurozone remain challenging with insolvencies still 70% higher than in 2007 on average.

A sharp Chinese economic slowdown will affect countries through their exports and commodity prices. Especially countries in Asia and Africa are vulnerable.

Vietnam is extremely export-driven, specialising in textiles and footwear. The economy is shifting towards higher value added sectors such as electronics.

Thailand ́s open and export-oriented economy is expected to benefit from a modest global recovery this year.

After 3.1% growth in 2014, Singapore’s economic growth is expected to accelerate to 3.4% in 2015, driven by investment; among other things, in its infrastructure.

Since 2012, economic growth has been high, driven by private consumption which accounts for about 70% of the economy. Growth has also been sustained by rising demand for exports.

Malaysia’s business environment is considered to be far more favourable than that of its regional neighbours, apart from Singapore, and the financial sector is strong.

As in 2013 and 2014, fierce competition means that the Dutch construction sector is still affected by price wars, leading to on-going pressure on margins.

The swift implementation of reforms would further strengthen Mexico ́s already solid external economic situation by boosting FDI and reducing dependency on volatile portfolio capital inflows.

India’s rebound is expected to be driven by the resumption of stalled infrastructure projects, high investment, urbanisation, the improvement of the business environment and structural reforms.

Although economic growth is slowing, the business environment is generally stable. The challenge for the Chinese authorities is to implement reforms to reduce the vulnerabilities in the economy.

Despite several bans which affected the Polish food sector negatively, this has performed quite well, mainly because of the rising domestic consumption.

Payments in the Danish food sector remained unchanged and are, on average, 30 days.

The Netherlands is the second largest exporter of food and agricultural products. The weakening of the euro gave a boost to further export growth.

Despite some problems, the Italian food sector benefits from its non-cyclical nature, its large and varied client base and a strong export performance.

The German food sector has continued to grow in the first half of 2014. Domestically, there is increased competition caused by large retailers and discounters’ dominating market share.

The French food sector has benefited from falling raw material prices and a weaker euro, which helps boost competitiveness abroad.

Without structural reforms to raise savings, reduce dependency on energy imports and improve the investment climate, Turkey ́s potential growth rate will likely decrease to 3% - 3.5% per annum.

Concerns that credit quality could be deteriorating in several countries in Asia Pacific are growing.

When Taiwanese respondents were asked about the main challenges to their business profitability this year, 43.5% answered that maintaining adequate cash flow was the most critical factor.

The main challenge to profitability cited by our survey respondents in Singapore was “maintaining adequate cash flow”, at 31.7%.

43.8% of Japanese respondents said that the biggest challenge to business profitability was falling demand for their products and services, the highest percentage of all Asia Pacific nations surveyed.

Indonesian respondents said that 37.1% of overdue receivables were paid within 30 days, slightly above average for the region.

Indian respondents were aligned with their peers in Asia Pacific in citing “maintaining adequate cash flow” as their biggest challenge.