Austria-based construction company Strabag has warned there is still no sign of a reversal in the faltering residential construction market, as it unveiled its performance for the first quarter of 2024.

The company saw its output volume increase by 2% in the first three months of its financial year (January to March) to €3.44 billion (US$3.73 billion).

It recorded the largest increases in its core markets of Germany, Poland and Romania. Output fell in Austria due to a sharp decline in the residential market.

The company’s order backlog as of 31 March 2024 was €24.6 billion (US$26.7 billion), which was an increase of 5% compared to the end of 2023.

New projects included the construction of a shipping lock in Kriegenbrunn in Germany, the expansion of a rapid transit line in Toronto (Canada), and the construction of a bridge over the river Oder near Nędza (Poland).

The backlog increased the most in Germany, Poland and the Middle East, in a year-on-year comparison. Orders fell in Austria and in the UK, due to the ongoing fulfilment of large projects.

Klemens Haselsteiner, CEO of Strabag, said, “The trends observed in the previous year continued into the first quarter of 2024. The situation in individual markets remains challenging, and there are still no signs of a reversal in residential construction. These developments notwithstanding, we were able to increase our order backlog to €24.6 billion compared to the end of 2023, giving us a solid basis for the rest of the year. We expect to see positive momentum above all from forward-looking projects in energy infrastructure and in reconstruction, conversion and refurbishment.

“The construction industry remains challenging in individual European markets. With the expected interest rate cuts, however, the environment should gradually improve starting in the second half of 2024.