EU construction output rises 2.6% year-on-year in August

The European Union's statistical office reported on Tuesday that construction production across the euro area increased 1.4% in August on an annual basis, while the broader EU registered a 2.6% year-on-year expansion despite ongoing weaknesses in residential and commercial building activity.

Monthly declines in building sector

Month-on-month figures revealed divergent trends across construction segments in August. Production for building construction fell 0.4% in the euro area and 1% across the EU compared to July, while civil engineering output dropped 2.1% in the currency bloc and 0.2% in the broader union, Eurostat figures showed.

Specialized construction activities provided the only monthly growth, expanding 2.5% in the euro area and 2.3% across the EU from the previous month.

Annual growth driven by specialized activities

Year-on-year comparisons highlighted the sector's reliance on specialized trades for overall growth. While specialized activities jumped 3.1% annually in the euro area, building construction declined 3.7% and civil engineering remained flat, the statistical office noted.

Wide disparities among member states

National data showed dramatic variations in construction fortunes across the continent. Hungary led monthly growth with a 14% surge, followed by Germany at 9.3% and Romania at 7.2%, while Slovenia posted the steepest decline at 5.1%, trailed by Slovakia at 4.9% and Italy at 2.9%.

Over the twelve-month period, Romania dramatically outpaced all peers with a 39% production increase, whereas France recorded the largest annual contraction at 7.8%.