European construction sector headed for sharp slowdown: Ifo

FRANKFURT (AFP) — The European construction industry, having enjoyed several good years, is now headed for a slump likely to last until 2010, a leading German think-tank said Tuesday.

Following significant growth in construction activity in the past two years, "a perceptible weakening will likely mark the European building sector up to 2010," the Munich-based Ifo economic research institute said in a statement.

After construction expanded by around 2.5 percent per year between 2005-2007, "yearly growth of only 0.5 percent is expected" for 2008-2010, Ifo said.

Last year, the construction industry in the 19 European countries studied was worth 1.5 trillion euros (2.4 trillion dollars).

Ifo's report was based on the results of a conference of the Euroconstruct business research group, which polled affiliated associations in nations from Finland and Norway to Italy, Portugal and Switzerland.

Germany represented the single biggest ...