The latest Industry Barometer from the European Federation of Engineering Consultancy Associations (EFCA) shows what the past 6 months have been for the consultancy and engineering industry in Europe. Order books are still looking very good, but the employment index is now falling. Current largest challenges for the consultancy and engineering industry in Europe are the shortage of staff, low fees and salary increases. Yet, the impact from the war in Ukraine, the energy crisis, rising inflation and increasing interest rates are continuing factors contributing to more uncertainty about market.
The EFCA Market Index, showing the overall development of the European markets, has improved markedly from spring 2022 and is at the highest level recorded since the start in 2018. The employment index reached a peak in spring 2022 and has now fallen back to more normal levels and expected to decline slightly in the coming 6 months which correlates with the Autumn Forecast made by the European Commission on labour markets. Employment growth forecast is at 1.7% in the EU this year, before coming to a standstill in 2023 and moderately edging up to 0.4% in 2024.
The full report is available here.