Euroarea construction output declines in August

Seasonally adjusted construction sector production in the euro area dropped 0.9 percent sequentially in August 2016 from July’s print of a rise of 1.8 percent, according to Eurostat. On a year-on-year basis, production in construction rose 0.9 percent, as compared with July’s rise of 3.1 percent. In the European Union, construction output dropped 1.3 percent in sequential terms and 0.5 percent in annual terms.

The sequential decline of 0.9 percent in euro area’s construction output is predominantly due to decline in the building construction and civil engineering, which fell 1 percent and 0.7 percent, respectively, in August. Largest fall was seen in Spain, which registered a decline of 3 percent in construction output. Meanwhile, the highest increases were seen in Slovakia and Italy, which saw a rise in construction output of 6.7 percent month-on-month and 3.4 percent, respectively.

The rise in construction output in year-on-year terms is due to civil engineering and building construction. On an annual basis, civil engineering rose 1.5 percent, while building construction increased 0.4 percent. Netherlands, Italy and France saw the largest production in construction, rising 13.6 percent, 4.2 percent and 2 percent year-on-year, respectively. Meanwhile, largest fall was seen in Slovenia that recorded a drop of 14.5 percent.