Eurozone construction output falls in August
Eurozone construction output softened in August, official data showed on Tuesday, bringing five months of growth to an end.
According to Eurostat, the European Union’s statistics office, seasonally-adjusted production in the construction sector fell 1.3% in August, from a 0.1% rise in July. Across the wider bloc, production fell 1.8%.
On a yearly basis, production was down 1.6% in the Eurozone, compared to growth of 3.5% in July, and by 1.0% across the EU.
Prior to August’s data, Eurozone construction output had grown on an annual basis every month since February.
Civil engineering fell by 1.9% month-on-month in the Eurozone, while building construction was down 1.3%. Among member states, Germany reported a 3.1% decline, while Spain was off 1.5% and France fell 1.7%. Data for Italy was not released.
Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, said: "A further drop in civil engineering activity, after a 1.2% fall in July, added to the weakness midway through the third quarter alongside a 1.3% fall in commercial and residential construction, reversing a 0.2% gain in July.
"Overall, these data all but ensure that output softened throughout the third quarter as a whole.
"Looking further ahead, the fiscal stimulus that economists and investors are eagerly awaiting should show up in these numbers eventually, at least in part. The civil engineering component in particular ought to be positively impacted by a sustained leap in public investment.
"For now, however, this sector isn’t going anywhere fast."