Construction in the European Union grew by 0.6% m/m in July

Production in the European Union’s construction sector grew by 0.6% in July 2025 compared to the previous month. In the eurozone, the increase was 0.5%. Compared to July 2024, the seasonally adjusted figure increased by 3.6% in the EU and 3.2% in the eurozone. This is according to preliminary data from Eurostat.

Among the member states, the highest monthly growth in construction output was recorded in Romania (+20.1%), Slovenia (+9.9%), and Belgium (+2.2%). The largest declines were observed in Spain (-4.5%), Sweden (-4.0%), and Portugal (-1.5%).

By activity, in July, building construction in the eurozone fell by 1.4% m/m, while civil engineering rose by 0.5% m/m and specialized construction work by 1.2% m/m. In the EU, building construction fell by 1.3% m/m, while civil engineering increased by 0.7% m/m and specialized construction work by 0.8% m/m.

On an annual basis, building construction in the EU increased by 3.6%, civil engineering by 2.9%, and specialized construction works by 2.7%.

It should be noted that, according to revised data, in June 2025, production in the EU construction sector fell by 0.3% on a monthly basis, while on an annual basis it grew by 2.1%. In the eurozone, the decline was 0.7% m/m and growth was 1.8% y/y.

As reported by GMK Center, the average annual production volume in the EU construction sector in 2024 decreased by 1.3% compared to 2023.

The prevailing stagnation in the EU construction sector has a negative impact on demand and sentiment in the domestic long-rolled steel market. Since the end of 2020, construction in the European Union has been in a prolonged 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 from macroeconomic problems and market uncertainty.

According to Eurofer, the EU construction sector, one of the main consumers of steel, will remain weak in 2025. After a 2% decline in 2024, growth is expected to reach +1.1% in 2025, while a slight slowdown to +0.8% is forecast for 2026.