Eurozone construction output down 0.7% in June

LONDON (ICIS)–Output from the construction sector in the eurozone fell 0.7% in June month on month while in the EU it decreased by 0.3% during the same period, the European statistics office said on Wednesday.

The decrease of 0.7% in construction output in the eurozone in June came on the back of a decrease in building construction of 0.9% and a fall in civil engineering of 0.5%, according to Eurostat.

In the EU, the 0.3% decrease was due to a fall of 0.5% in building construction and a decrease in civil engineering of 0.2%.

The biggest falls in construction output were registered in Hungary (-7.5%), Spain (-2.9%), Romania (-2.6%) and Slovakia (-2.3%), while the highest increases were observed in Poland (2.7%), Germany (1.2%), the Czech Republic and the United Kingdom (both 1.1%).

The construction fall in June follows a decrease in May, when output fell by 1.4% in both the eurozone and the EU.

In June 2014, construction in the eurozone fell by 2.3% compared to June 2013, and by 0.5% during the same period in the EU.

European builders have not been able to reverse the trend that started in 2008 after the financial crisis, with construction output well below its peak, reached in 2006.

The decrease of 2.3% in the eurozone in June 2014 year on year came on the back of a fall of 2% in building construction and a more pronounced decrease in civil engineering of 3.4%.

In the EU28, the decrease of 0.5% year on year came on the back of a fall of 0.2% in building construction and a decrease in civil engineering output of 2.7%.

Year on year, the largest decreases in construction output were in Romania (-13.1%), Portugal (-10.3%), Slovakia (-5.0%) and the Netherlands (-3.5%). The highest increases were observed in Slovenia (28.7%), Hungary (9.8%), Poland (8%) and Spain (6.8%).

Construction output in the EU, eurozone May 2005-June 2014. Pink line is eurozone; black is EU.

Source: Eurostat.