Construction in the EU increased by 0.7% m/m in October

Production in the construction sector of the European Union in October 2024 increased by 0.7% compared to the previous month. Compared to October 2023, the seasonally adjusted figure decreased by 0.8%. This is evidenced by preliminary data from Eurostat.

Among the EU countries, the highest monthly growth in construction production was recorded in Slovakia (+7.9%), Austria (+6.5%), Hungary and Portugal (both +4.6%). Declines were observed in Romania (-8.3%) and Poland (-2.7%).

Construction of engineering structures in the EU increased by 1.7% month-on-month and by 1.3% y/y, while construction of buildings (residential and non-residential) increased by 0.6% m/m and decreased by 0.5% y/y.

Acording to the final data, in September 2024, production in the EU construction sector fell by 2.4% compared to the previous month. The construction of engineering structures decreased by 2.2% m/m, and the construction of buildings (residential and non-residential) – by 3% m/m.

The predominant stagnation in the EU construction sector has a negative impact on demand and sentiment in the domestic long products market. Since the end of 2020, construction in the European Union has been in a long 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 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’s forecasts, in 2024, construction volumes in the EU will decline by 0.4% y/y. However, a positive growth trend of 2% y/y is expected in 2025.

In 2023, housing construction experienced a decline due to the tightening of monetary policy by the European Central Bank (ECB) to curb inflation. However, more positive dynamics were observed in civil construction, which proved to be resilient to these conditions, but still could not compensate for the decline in residential construction.