Almost six in ten construction firms in Flanders expect the economy to deteriorate, as the sector’s confidence indicator slipped back into negative territory this quarter, according to trade association Bouwunie.
The quarterly barometer for self-employed builders and SMEs in the Flemish construction sector fell to 99.1 points, down from 100.1 in the previous quarter. Readings above 100 indicate improving economic conditions, while those below 100 point to a worsening outlook.
Apart from last quarter, the indicator has remained in negative territory since 2022. In the latest survey, 58% of construction entrepreneurs said they expect a negative economic trend.
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Bouwunie said activity is holding up for now, but the outlook is weakening. Confidence in the economic climate continues to fall, while rising costs for energy, materials and, soon, wages are putting pressure on profitability.
The organisation also warned that a growing number of construction companies no longer have enough financial scope to make new investments.
The barometer shows that 51% of construction firms are profitable, while 44% are breaking even and 5% are operating at a loss.
Meanwhile, 46% of companies said they expect to be able to meet their financial obligations in the coming months without difficulty.
Bouwunie urged the federal government to reach a budget agreement quickly, while taking account of what it called the particularly difficult situation in the construction sector.
It said businesses need confidence and a clear outlook, warning that uncertainty could make households even more reluctant to build and entrepreneurs more hesitant to invest.
Bouwunie also repeated its call for a reduction in VAT on new-build homes.
