Construction in the European Union fell by 0.6% m/m in June

Production in the construction sector of the European Union in June 2023 decreased by 0.6% compared to the previous month. This is evidenced by the data Eurostat.

Compared to May 2022, seasonally adjusted production in EU construction remained unchanged in May this year.

Among the EU countries, the largest monthly decline in construction was recorded in Germany (-2.8% m/m), France (-2.5%), Luxembourg and Slovakia (-1.4% each). The largest growth was observed in Romania (+3.6% m/m), the Czech Republic (+2.5%) and Sweden (+3%).

The construction of engineering structures in the EU decreased by 0.9% m/m and 1% y/y, while the construction of buildings (residential and non-residential) increased by 0.5% m/m, and by 4.6% y/y

As GMK Center reported, following the results of May this year, production in construction sector in the EU decreased by 0.4% compared to the same period in 2022. The construction of engineering structures increased by 3% y/y, while the construction of non-residential and residential buildings decreased by 0.9% y/y.

Stagnation of the EU construction sector has a negative impact on demand and sentiment on the domestic market of long-term rental. Since the end of 2020, construction in the European Union has been in a long period of recovery thanks to significant government support, which stimulated demand for steel products, but since the beginning of this year, the European construction sector has suffered due to macroeconomic problems and uncertainty in the market.

According to Eurofer forecasts, in 2023 construction volumes in the EU will decline by a moderate 0.5% and recover to +0.7% in 2024.