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Construction sector faces historic downturn

3/10/2025, 14:42

NHO’s latest member survey reveals a concerning trend: the construction sector is experiencing its worst outlook in 18 months, with 23 percent of companies expecting further deterioration.

2,006 companies participated in NHO’s member survey conducted between September 24 and October 1. The net balance for market prospects has fallen to -9 percent in October – the weakest figures in a year and a half.

Construction industry hardest hit

NHO Construction has by far the worst situation with a net balance of -34 percent, meaning a massive majority of construction companies assess the situation as poor. Future prospects are also weakest in the sector, with a net balance of -22 percent.

The best outlooks are found in NHO Transport, Norwegian Seafood, and Finance Norway.

Geographic differences

Only Nordland and Vestland have a majority of optimists regarding the next six months. The most pessimism is found in Østfold, Trøndelag, and Buskerud.

Interest rates and employment

Companies expect the policy rate at 3.93 percent at year-end, with approximately two rate cuts during 2026. Despite the gloomy sentiment, slightly more companies are planning to increase employment over the next six months than reduce it.