CIC - Construction Intelligence Center

Global construction risk levels ease marginally

29 Jun 2017

The general risk level facing the construction industry globally has eased, according to the Q2 2017 update of Timetric’s Construction Risk Index (CRI).

 

Risk levels have fallen marginally across all the major regions, except the Middle East and Africa, where a recent diplomatic conflict between Qatar and other key markets in the region threatens to disrupt economic activity. Conversely, clearer signs of a sustained recovery in major economies in Western Europe has contributed to an improvement in the region’s risk profile. After a steady upturn over the past two years, the unweighted global average CRI score fell to 41.58 in Q2 2017 from 41.98 in Q1 2017 (with a score of 100 representing the highest level of risk, and 0 the lowest). For the advanced economies in the CRI, the unweighted risk score fell to 32.60 from 33.37, while for emerging markets it dropped to 49.73 from 49.46. 

 

Global Risk Review

Note: 100=very high risk; 0=very low risk

 

Sweden and Switzerland remain the only two A1-rated countries in the CRI. Residential construction activity continues to bolster Sweden’s economy, while the Swiss economy has adjusted to the appreciation in the Swiss franc. Hong Kong has moved up three places to 4th in the global rankings, in part supported by the buoyant property market. 

 

There were 33 countries that recorded improvements in their risk profiles in the latest CRI update. Many countries in Europe have continued to record positive growth in their construction industries, supported by stronger economies and fixed investment growth. France and Italy both made significant gains in the global rankings in the Q2 2017 update. 

 

In total, 16 countries recorded a deterioration in their risk profile in the Q2 2017 update, one of which is the UK, where the failure of the governing Conservative Party to secure a majority in parliament following recent elections has compounded concerns over the uncertain outlook for the country as it heads into negotiations over its exit from the EU.

 

Timetric’s Construction Risk Index (CRI) is designed to provide a standardized view of the underlying degree of country-level risk facing the construction industries in 50 major developed and emerging markets around the world. The model, which is updated on a quarterly basis, provides an analysis of current conditions and a forward-looking assessment of general and specific risks that could undermine the growth prospects for the construction industries, by preventing new projects from being executed, disrupting existing projects, or ultimately leading to project failures.
 

 

About this report

 

This information is taken from the Q2 2017 update of the Construction Risk Index. CIC clients can access the report here

 

About the Construction Intelligence Center

 

The Construction Intelligence Center (CIC) is the most comprehensive source of data and analysis on the global construction industry. The Construction Intelligence Center is a product of Timetric, which provides information solutions and technologies that enable organizations to drive business value and manage business risk.

For more information and updates, please visit www.construction-ic.com.

 

About Timetric

 

Timetric is a leading provider of online data, analysis and advisory services on key industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.

 

For more information and updates, please visit www.timetric.com.

 

For media enquiries, please contact the Timetric press office at press@uk.timetric.com or call +44 (0)20 3096 5769.