Construction in the European Union fell by 0.5% m/m in June

The largest declines were observed in Spain, Hungary, and Slovenia

Production in the European Union’s construction sector fell by 0.5% in June 2025 compared to the previous month. Compared to June 2024, the seasonally adjusted figure increased by 1.9%. This is according to preliminary data from Eurostat.

Among the member states, the largest monthly decline in construction output was recorded in Spain (-5.6%), Hungary (-5.3%), and Slovenia (-3.7%). The highest growth was observed in Slovakia (+5.3%), Romania (+4.5%), and Poland (+3.2%).

Civil engineering in the EU fell by 0.1% in June compared to the previous month and rose by 1.3% year-on-year, while building construction (residential and non-residential) fell by 1.6% month-on-month and rose by 3.9% year-on-year.

According to final data, in May 2025, production in the EU construction sector fell by 1.9% compared to the previous month and grew by 3.3% y/y. Civil engineering construction fell by 0.1% month-on-month and grew by 3.9% year-on-year, while building construction (residential and non-residential) fell by 2.3% month-on-month and 5.8% year-on-year.

As reported by GMK Center, the average annual volume of construction output in the EU 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-rolled 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, the EU construction sector, one of the main consumers of steel, will remain weak in 2025. 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.