Construction in the European Union fell by 1.3% m/m in May

The largest declines were observed in Germany, Belgium, and the Netherlands

Production in the European Union’s construction sector fell by 1.3% in May 2025 compared to the previous month. Compared to May 2024, the seasonally adjusted figure increased by 2.7%. This is according to preliminary data from Eurostat.

Among the member states, the largest monthly decline was recorded in Germany (-3.9%), Belgium (-2.2%) and the Netherlands (-1.8%). The highest growth was observed in Slovenia (+5.4%), Hungary (+2.5%), and the Czech Republic (+2.3%).

Civil engineering construction in the EU fell by 0.5% in May compared to the previous month and rose by 3.3% year-on-year, while building construction (residential and non-residential) fell by 0.4% month-on-month and rose by 5.3% year-on-year.

According to final data, in April 2025, production in the EU construction sector increased by 3.5% compared to the previous month and by 4% year-on-year. Civil engineering fell by 0.1% month-on-month and rose by 2.4% year-on-year, while construction of buildings (residential and non-residential) increased by 6.8% month-on-month and 5.3% year-on-year.

As reported by GMK Center, the average annual production volume in the EU construction sector in 2024 decreased by 1.3% compared to 2023.

The prevailing stagnation in the EU construction sector is negatively affecting demand and sentiment in the domestic long steel market. Since the end of 2020, construction in the European Union has been in a prolonged period of recovery thanks to significant government support, which has stimulated demand for steel products. However, since the beginning of 2023, the European construction sector has been suffering from macroeconomic problems and market uncertainty.

According to Eurofer, in 2025, the EU construction sector, one of the main consumers of steel, will remain weak. After a 2% decline in 2024, growth is expected to reach +1.1% in 2025, while a slight slowdown to +0.8% is forecast for 2026.