Construction in the European Union increased by 0.1% m/m in March

Production in the construction sector of the European Union in March 2025 increased by 0.1% compared to the previous month. Compared to March 2024, the seasonally adjusted figure decreased by 0.7%. This is evidenced by preliminary data from Eurostat.

Among the member states, the largest month-on-month increases were observed in Austria (+5.9%), Romania (+4.6%), and the Czech Republic (+3.5%). The largest decline was observed in Portugal (-4.3%), Slovenia (-4.0%) and Poland (-3.7%).

In March, construction of engineering structures in the EU increased by 2.5% compared to the previous month and by 0.8% y/y, while the construction of buildings (residential and non-residential) increased by 0.8% m/m and decreased by 1.6% y/y.

It should be noted that according to the final data, in February 2025, production in the EU construction sector decreased by 1.1% compared to the previous month and by 0.3% y/y. The construction of engineering structures decreased by 0.7% m/m and 2.3% y/y over the month, while the construction of buildings (residential and non-residential) fell by 1.8% m/m and 3.2% y/y.

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

The overwhelming 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 prolonged recovery period 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 from macroeconomic problems and market uncertainty.

According to Eurofer, in 2025, the EU construction sector is expected to grow by 2% y/y. In 2024, the indicator decreased by 0.4% y/y.