Construction in the EU increased by 1.8% m/m in February

Production in the construction sector of the European Union in February 2024 increased by 1.8% compared to the previous month. Compared to February 2023, the seasonally adjusted figure decreased by 0.6%. This is evidenced by preliminary data from Eurostat.

Among the EU countries, the largest monthly decline in construction in February was recorded in Hungary (-8.5% m/m), France (-2.1% m/m) and Sweden (-0.9% m/m). The highest growth was observed in Austria (+9.3% m/m), Germany (+7.9% m/m), and Slovenia (+6.3% m/m).

The construction of engineering structures in the EU increased by 3.6% m/m and 4.2% y/y over the month, while the construction of buildings (residential and non-residential) increased by 3.4% m/m and decreased by 2.8% y/y.

According to the final data for January 2023, production in the EU construction sector fell by 1.2% compared to the previous month. The construction of engineering structures in the EU decreased by 0.6% m/m and 1.3% y/y over the month, and the construction of buildings (residential and non-residential) – by 3.6% m/m and 5.1% y/y.

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 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’s forecasts, in 2024, construction in the EU will decline by 0.4% y/y. However, a positive growth trend of 2% y/y is expected in 2025.

As GMK Center reported earlier, 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.