S&P Global – Engineering and Construction Industry Credit Outlook, Jan 2025

The report by S&P Global "Engineering and Construction Industry Credit Outlook" explores the outlook for the engineering and construction (E&C) sector in 2025. E&C issuers are expected to grow at a moderate pace in 2024 and 2025, driven by infrastructure spending and favorable project funding conditions. The energy transition and demand for data centers also support growth. In China, growth is expected to be limited due to high base effects and declining new orders. Key assumptions include lower interest rates accelerating investments, with significant effects anticipated in late 2025 and 2026. Risks include rising material costs, trade policies, and skilled labor shortages in the U.S. and Europe. Chinese E&C companies face challenges with narrowing ratings headroom due to financial conditions.