Construction Activities in Eurozone Up in First Quarter
Published By : 20 May 2015 | Published By : QYRESEARCH
Construction activities in the 19 countries that constitute the Eurozone went up in March and the entire first quarter. This is a sign that households as well as businesses in the region have overcome the years of caution and are now more willing to invest.
Last week, the European Union’s statistics agency Eurostat said that the economy of the Eurozone rose at a quarter to quarter speed of 0.4 per cent during the first three months of the year, which is a small rise from the last three months of 2014.
Eurostat released figures on Wednesday that suggested that the rise in construction activities has enabled the growth during that period. The statistics agency recorded a 0.8 per cent hike in March from February and a rise of 0.3 per cent between the last quarter of the previous year and the first quarter of this.
These numbers mark the very first quarter on quarter hike since the first quarter of last year, even though those figures at that time proved to be a false dawn. Construction activities in the first three months of the present year is actually 0.5 per cent lesser than that during the same period last year.
Policy makers identify weak investments as the major hurdle that is standing in the way of faster recovery in the Eurozone. They fear that businesses and households are being cautious owing to years of low growth and are less willing to embark on long term projects and take risks. During the years of depression, the financial crisis combined with the debt crisis of the Eurozone itself.
The European Central Bank has said time and again that it can try to boost inflation and support economic activity through its stimulus programs. However, a pickup in investment needs action on the part of the government to liberalize labor as well as product markets.