News Global Market ЄС 3693 20 March 2026
The residential and utility segments declined, while specialized work saw a slight increase
In January 2026, seasonally adjusted production in the European Union’s construction sector fell by 0.9% compared with December 2025, while in the eurozone the decline was 0.1% month-on-month. This is according to preliminary data from Eurostat.
A month earlier, in December, construction activity, on the contrary, rose by 1% in the EU and by 0.7% in the eurozone, so the sector returned to decline at the start of the year.
On an annual basis, the trend also worsened. In January, construction output in the EU was 2% lower than a year earlier, and in the eurozone, it was down 1.9% y/y. This contrasts with December’s figures, when y/y growth of 1.3% was still observed in the EU and 0.7% in the eurozone.
By segment, building construction exerted the greatest downward pressure on the overall result in January. In the eurozone, this indicator fell by 3% m/m, civil engineering by 4.4%, while specialized construction work rose by 1.7%. In the EU, building construction fell by 3.8% m/m, civil engineering by 4.5%, while specialized construction work rose by 0.4%. This indicates that the weakness in the residential and infrastructure segments at the start of the year was not offset by renovation and other specialized construction work.
Among member states, the largest monthly declines in January were recorded in Poland (-9%), Hungary (-8.8%), and Slovakia (-5.4%). Meanwhile, growth was seen in Germany (+2.9%), the Netherlands (+0.4%), and Denmark (+0.2%). On an annual basis, the worst results were in Poland (-11%), Spain (-9.9%), and Hungary (-9.5%), while the highest growth rates were observed in Slovenia (+11.6%), Bulgaria (+4%), and Denmark (+3.3%).
As reported by GMK Center, by the end of 2025, the total construction in the European Union had grown by 0.5%, indicating a weak recovery of the sector following a 1.3% decline in 2024.
According to Eurofer, in 2025, the EU construction sector, one of the main consumers of steel, remained weak. Following a 2% decline in 2024, growth was expected to reach +1.1% in 2025, while a slight slowdown to +0.8% was forecast for 2026.
