Construction output in the Euro Area declined by 0.1% year-on-year in December 2024, following a 0.3% rise in November, highlighting a slowdown in the region’s construction sector.
Euro area construction output edges lower
Specialised construction activities contracted further, falling 1.4% compared to a 0.6% decline in the previous month, reflecting weaker demand for renovation and maintenance work. Additionally, growth in building construction slowed sharply to just 0.1% (down from 0.9%), while civil engineering activity also lost momentum, rising 2% compared to 3.6% in November.
Countries details
Among the bloc's largest economies, France and Italy experienced contractions in construction output, with France posting a 4% decline (vs. -4.1% in November), continuing its prolonged downturn, while Italy's output reversed sharply to -0.6% from a strong 3.3% growth previously. In contrast, Germany’s construction sector showed signs of recovery, rebounding 1.4% after a 1.7% decline in November. Spain, on the other hand, continued its strong expansion, with output surging 11.2% (up from 9.5%), driven by robust residential and infrastructure investments.
Month-on-month figures
On a month-on-month basis, construction activity remained stagnant, pointing to persistent challenges in the sector, including high financing costs, regulatory hurdles, and material shortages. Over the entire year of 2024, construction output contracted by 0.9%, reflecting a challenging environment amid rising interest rates and economic uncertainty. Looking ahead, the sector's performance will likely depend on the European Central Bank’s monetary policy stance, government infrastructure spending, and the broader economic recovery across the region.
