Euro Area Construction Activity Nearly Stalls in August

Eurozone construction output fell 1.9% year over year in January 2026, the most since October 2024, after an upwardly revised 0.7% rise in December. Output fell for building activity (-8.9% vs -4.2%) and civil engineering (-4.2% vs 1.3%) while production slowed for specialised construction activities (1.1% vs 2%). Among major economies, output fell in France (-1.5% vs -3.2), and Spain (-9.9% vs 6.3%), while Germany recorded growth of 1.1% (up from 0.2%). On a monthly basis, construction output decreased 0.1%, after a 0.7% increase.

Eurozone construction output fell 0.9% year over year in December 2025, marking a softer contraction than the 1.4% decline recorded in November. Building activity remained the main drag, dropping 3.3%, though the pace of decline eased slightly from the previous month’s 3.7% fall. In contrast, civil engineering output strengthened, with growth accelerating to 1.6% from 0.5% in November. Specialized construction activities also showed signs of stabilization, edging up 0.2% after a 0.4% contraction a month earlier. On a monthly basis, construction output rebounded strongly, rising 0.9% in December following a 1.5% decrease in November.

Eurozone construction output declined 0.8% year-on-year in December 2025, reversing an upward revised 1.9% growth in the previous month. The slowdown was mainly driven by further decline in building activity (-3.5% vs -2.6%), along with softer growth in civil engineering (0.4% vs 3.3%) and specialized construction (0.4% vs 1.7%). Among major economies, output declined further in France (-4.5% vs -1.3%) and Spain (-2.8% vs -0.3%), while Germany reversed to a decline (-0.3% vs 1.0%) and the Netherlands grew more slowly (0.6% vs 2.4%). On a monthly basis, construction output fell 1.1% in December, reversing from a revised 1.7% growth in the previous month.