The U.K.’s Brexit vote last June, which called for it to exit membership in the European Union, is among factors that lowered midterm expectations for the region’s construction market, says a November report from the Euroconstruct forecasters from 19 European countries. The 2016 growth forecast fell 0.6%, to 2%, with only marginal hikes through 2020. Eastern Europe will grow the fastest, up 5.3% a year for the next three years, compared to 2% in the West.

Brexit caused U.K. currency devaluation of nearly 10% and 15% against the euro and U.S. dollar, respectively. The impact “was widely felt in November, with [materials] cost inflation the strongest since early 2011,” says David Noble, CEO of the Chartered Institute of Procurement and Supply. But contractors are absorbing price hikes to keep overall bid levels down, says Simon Rawlinson, strategic research head at Arcadis (U.K.) Ltd.