An analysis originally published by Austria’s Landwirtschaftskammer Kärnten says Europe’s timber industry continues to face weak construction activity, high financing costs and subdued demand. Global Wood’s English-language report says… The European timber industry is facing a prolonged period of consolidation as weak construction activity, industrial recession and higher financing costs continue to pressure the sector. The outlook was discussed at International Wood Day in Klagenfurt, Austria, where around 300 industry leaders and experts gathered. Raiffeisenbank International chief economist Gunter Deuber said Germany’s continued industrial weakness is affecting Central European sawmills, panel manufacturers and timber construction companies, with building permits remaining at historically low levels. High household savings and cautious spending are also limiting residential construction, while stricter lending conditions and elevated construction costs are delaying projects. Although interest rates have fallen, financing remains more expensive than before 2022.