Construction fell 1.1 per cent in 2008

The construction industry in Portugal registered a fall in production of 1.1 per cent in 2008 according to the Portuguese Construction Federation.

FEPICOP, the Federação Portuguesa da Construção, said that the crisis “was more intense than had been forecast” but expected some recovery in 2009.

FEPICOP stated that it believed that the measures announced at a European and national level to combat the effects of the economic crisis could mean “a better year in 2009 than 2008”.

A contraction in the civil engineering and non-residential construction had contributed overall to a slump that had already been seen in the residential construction market.

The overall financial health of companies in the sector as a whole saw a contraction of 6.2 per cent whereas 2007 had been positive.

The Federation also warned that layoffs in staff would contribute to the overall unemployment situation in Portugal running at over seven per cent.

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