Construction in the EU increased by 0.4% m/m in December

Production in the construction sector of the European Union in December 2024 increased by 0.4% compared to the previous month. Compared to December 2023, the seasonally adjusted figure decreased by 0.8%. This is evidenced by preliminary data from Eurostat.

The average annual production in construction in 2024 decreased by 1.3% compared to 2023.

Among the EU countries, the highest monthly growth in construction production was recorded in Poland (+5.7%), the Czech Republic (+4.6%) and Portugal (+3.6%). The largest decline was observed in Bulgaria (-3.4%), the Netherlands (-2.0%) and Italy (-1.7%).

The construction of engineering structures in the EU increased by 0.7% month-on-month and by 1.1% y/y, while the construction of buildings (residential and non-residential) increased by 0.6% m/m and fell by 1.3% y/y.

According to the final data, in November 2024, production in the EU construction sector increased by 0.8% compared to the previous month. The construction of engineering structures increased by 1.3% m/m over the month, while the construction of buildings (residential and non-residential) decreased by 0.1% m/m.

The overwhelming stagnation in the EU construction sector is having a negative impact on demand and sentiment in the domestic long products market. Since the end of 2020, construction in the EU has been in a long period of recovery thanks to significant government support, which has boosted demand for steel products. However, since the beginning of 2023, the European construction sector has been suffering due to macroeconomic problems and market uncertainty.

Average annual production in EU construction in 2023 increased by 0.1% compared to 2022.

According to Eurofer, in 2024, construction volumes in the EU decreased by 0.4% y/y. However, a positive growth trend of 2% y/y is expected in 2025.