Construction production in the euro area increased by 0.5 per cent in July 2025 compared with June, according to preliminary estimates from Eurostat.
Monthly Growth Following Previous Declines
The rise in construction output in July follows a decline in June 2025, where production fell by 0.7 per cent in the euro area and by 0.3 per cent in the European Union. This rebound is reflected in Eurostat’s latest update, which indicates a broader recovery trend within the sector.
Annual Comparisons Show Robust Growth
Compared to July 2024, construction production in the euro area has grown by 3.2 per cent, with the EU witnessing a slightly higher increase of 3.6 per cent. This annual growth highlights the ongoing recovery from earlier disruptions in the construction sector.
Sector-Specific Insights into Construction Production
Within the euro area, the latest data reveals a mixed performance across different segments of the construction industry. Monthly figures indicate that:
- Production in the construction of buildings decreased by 1.4 per cent.
- Civil engineering saw a modest increase of 0.5 per cent.
- Specialised construction activities rose by 1.2 per cent.
In the broader EU context, the trends are similar:
- Building construction fell by 1.3 per cent.
- Civil engineering grew by 0.7 per cent.
- Specialised construction activities saw an increase of 0.8 per cent.
Regional Variations Highlight Uneven Recovery
The recovery in construction production is not uniform across member states. Among those with available data, Romania recorded the highest monthly increase at an impressive 20.1 per cent, followed by Slovenia at 9.9 per cent and Belgium at 2.2 per cent. Conversely, the most significant monthly decreases were observed in Spain at 4.5 per cent, Sweden at 4.0 per cent, and Portugal at 1.5 per cent. These disparities underscore the varied pace of recovery across different nations.
Annual Trends Reveal Strong Performers and Decliners
On an annual basis, the growth rates in construction production also reflect variability among EU member states. In the euro area:
- Construction of buildings increased by 3.3 per cent.
- Civil engineering grew by 3.4 per cent.
- Specialised construction activities saw a rise of 2.8 per cent.
In the EU, annual growth rates were recorded as follows:
- 3.6 per cent for construction of buildings.
- 2.9 per cent for civil engineering.
- 2.7 per cent for specialised construction activities.
Romania not only led in monthly growth but also posted the highest annual increase in construction production at 41.1 per cent. Spain and Slovenia followed, with annual increases of 22.8 per cent and 21.4 per cent, respectively. In contrast, declines were noted in Sweden at 4.5 per cent, Austria at 2.7 per cent, France at 1.7 per cent, and Germany at 1.2 per cent.
Implications of the Latest Trends
Eurostat’s figures highlight the uneven recovery within the construction sector across the euro area and EU. While civil engineering and specialised activities demonstrate steady gains, building construction is experiencing challenges, evident in the monthly declines reported. This situation suggests that while some regions and sectors are thriving, others still face difficulties in bouncing back to pre-pandemic levels.
As the construction sector navigates these dynamics, stakeholders will need to focus on addressing the disparities in growth to ensure a balanced recovery across all areas of the industry.
