Brussels, Belgium. Construction output in the European Union and euro area rose in March 2026 compared with February, according to Eurostat, despite remaining lower than a year earlier. Locally-sourced data also indicated Cyprus’ building sector continued to expand despite rising material costs.
Monthly recovery in euro area and EU
Construction production increased by 0.8 per cent in the euro area and 1.2 per cent in the EU in March compared with February, following declines of 0.8 per cent and 0.4 per cent respectively the previous month.
Annual output remains weaker
On a year-on-year basis, construction output fell by 1.2 per cent in the euro area and 0.6 per cent in the EU compared with March 2025.
Sector breakdown behind the monthly rise
In the euro area, civil engineering output rose by 5.7 per cent and building construction by 1.1 per cent, while specialised construction activities increased by 0.5 per cent.
Across the EU, civil engineering rose by 4.8 per cent, building construction by 1.9 per cent and specialised activities by 1.0 per cent.
Member state changes
Among member states with available data, the strongest monthly increases were recorded in Slovakia, Sweden and Poland. Declines were reported in Romania, Italy, France and Denmark.
Year-on-year pressures within the sector
Building construction output declined by 7.1 per cent in the euro area and by 4.8 per cent in the EU year-on-year.
Civil engineering rose by 3.0 per cent in the euro area and 2.2 per cent in the EU, while specialised construction activities edged lower in both regions.
Largest annual declines and increases
The largest annual declines were recorded in Spain, France and Austria, while Slovenia, Slovakia and Romania posted strong increases.
How do you think rising material costs will affect construction activity in your area?
