Luxembourg’s construction sector expects the number of orders to plummet over the following months, as many customers are postponing or cancelling projects due to the substantial price increases and rising interest rates. This information was provided by Minister for Small and Medium-Sized Enterprises Lex Delles in his reply to a parliamentary question by MP André Bauler from the Democratic Party (DP).
Construction companies are said to be struggling with the increase in energy, material, and labour costs.
While a majority of prices has gone down again since the outbreak of the war in Ukraine, they have now stagnated at a high level. Since the beginning of 2020, the price of wood has increased by 93% while the cost of reinforced concrete has increased by 81%. Energy prices have evolved in a similar way.
Overall, however, the sector still remains optimistic. According to the Minister, trust within the construction industry is still at “a historical high”.
