The sector rebounded after the February decline, but the y/y trend remained negative
In March 2026, seasonally adjusted production in the EU construction sector rose by 1.2% compared to February, while in the eurozone it increased by 0.8% month-on-month. This is according to preliminary
data from Eurostat. At the same time, February figures were revised downward: the decline in the EU was 0.4%, and in the eurozone, 0.8% month-on-month.
Despite the monthly recovery, the sector’s annual trend remains negative. Compared to March 2025, construction activity declined by 0.6% in the EU and by 1.2% in the eurozone. This indicates that after a weak start to the year, the sector is showing signs of stabilization, but has not yet returned to sustained growth.
By segment, improvements were observed across all major areas in March. In the EU, building construction rose by 1.9% month-on-month, civil engineering by 4.8%, and specialized construction works by 1%. In the eurozone, building construction increased by 1.1%, civil engineering by 5.7%, and specialized works by 0.5%. The strongest recovery in the infrastructure segment partially offset the weakness in residential construction.
On an annual basis, the market structure remains uneven. In the EU, building construction declined by 4.8%, and specialized works by 0.3%. At the same time, civil engineering grew by 2.2%, indicating relatively better dynamics for infrastructure projects. In the eurozone, this trend was even more pronounced: building construction fell by 7.1%, while civil engineering grew by 3%.
Among member states, the highest monthly growth in March was recorded in Slovakia (+11.4%), Sweden (+6.6%), and Poland (+6.1%). Declines were seen in Romania (-1.1%), Italy (-0.7%), France (-0.2%), and Denmark (-0.1%).
On an annual basis, the largest declines in construction output were observed in Spain (-4.4%), France (-3.3%), and Austria (-3%). The highest growth rates were recorded in Slovenia (+29.6%), Slovakia (+27.9%), and Romania (+9.4%).
As reported by GMK Center, by the end of 2025,
total construction volume in the European Union had grown by 0.5%, indicating a weak recovery in 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.
