An upswing in local investment expenditures

1/12/2017

Civil engineering construction is mainly commissioned by the public sector. Municipalities and local government are the most important group of investors. They represent 41% of the total civil engineering work. Consequently, they have a large influence on the activities.

For some municipalities, fiscal situation remains critical. According to the government, municipalities and local Government will have to reduce primarily their public deficit and debt over the period 2018-2022.The Government wishes to limit the increase in operating expenditure to + 1.2% in value (compared to a trend increase to + 2.5%) and to set up a maximum debt ratio.

But, for a few months, many municipalities have been recovering financial leeway for public investments.

Furthermore, local elections temporarily increase civil engineering construction. France’s electoral calendar was unfavourable until 2017 but is encouraging for 2018 and 2019.

All in all, the local investment expenditure in civil engineering should rise by 3% next year.

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