EU construction activity slows amid economic pressures

Construction activity across the European Union slowed further in February 2025, according to the latest data from Eurostat. Both building and civil engineering sectors reported notable declines compared to the previous year, as economic pressures continue to weigh on the industry.

Production in construction fell by 0.5% in the euro area and by 0.4% across the wider EU compared with January 2025. Over the twelve-month period, building construction dropped by 3.6% in the EU and by 3.4% in the euro area. Civil engineering activity also slipped, down 1.9% and 2.7% respectively.

Germany and Slovenia recorded the sharpest annual declines, with output falling by 5.3% and 10.8% respectively. However, some Member States reported growth: Italy posted a 6.0% annual increase, while Spain registered a 2.7% rise.

Specialised construction activities remained more resilient, growing by 0.7% year-on-year across both the EU and the euro area.

Despite the overall downturn, February 2025 saw a slight 0.3% annual increase in total EU construction output, largely supported by gains in certain countries such as Bulgaria (+7.4%) and Finland (+5.5%).

Short-term indicators suggest that construction faces ongoing headwinds. Rising costs, labour shortages, and uncertainty in infrastructure investment continue to challenge the sector across Europe.

Looking ahead, industry analysts note that targeted public spending, particularly in road infrastructure and housing, could help stabilise activity in the second half of the year. However, much will depend on broader economic trends and efforts to boost workforce capacity.