Euro Area Construction Output Rises 1.8 Percent in August and Returns to Annual Growth

By The Edge Research Team

Construction output in the euro area rose 1.8 percent in August from July, Eurostat said on 20 October. That is the largest monthly gain since March, on our reading. Output across the wider EU grew 2.0 percent. Compared with August 2025, euro area construction was 1.4 percent higher, the first annual gain since May, on our reading, after two months of decline.

July was revised up. The euro area now shows a 0.2 percent monthly rise for that month, against no change in the first estimate published on 18 September. In the EU, July now shows a 0.1 percent fall, revised from a 0.3 percent fall.

The seasonally adjusted euro area index reached 104.8 in August, on a 2021 base of 100. No month in the release stood higher, on our reading. It is 2.0 percent above June’s level, on our calculation. The gain more than recovers the 1.6 percent fall in June, on our reading. The EU index rose to 105.5, which puts EU output 5.5 percent above its 2021 average, on our reading.

Specialised work rises as building and civil engineering slip

Only one of the three types of work grew in August, on our count. Specialised construction activities rose 2.5 percent on the month in the euro area. Building work slipped 0.4 percent, and civil engineering lost 2.1 percent. The gap between the strongest and weakest of the three was 4.6 percentage points, on our calculation.

Civil engineering has now fallen in three of the last four months, on our count. Its annual rate was flat in August, down from 4.8 percent growth in March.

Building work was the only one of the three to shrink on the year, on our count. Euro area building output was 3.7 percent lower than in August 2025. Even so, the decline was the smallest of the six months in the release, on our reading. Building output had been 8.1 percent lower on the year in both March and May. In February, as published in September, it stood 12.5 percent below a year earlier.

Specialised activities were 3.1 percent higher on the year. That is the sector’s strongest annual rate of the six months in the release, on our reading.

Euro area production in construction by sector, August 2026

Monthly changes are calendar and seasonally adjusted; annual changes are calendar adjusted. July figures are as published on 20 October 2026.

Hungary, Germany and Romania lead on the month

Hungary posted the largest monthly rise, at 14.0 percent. It followed three straight monthly falls from May to July, on our count. Its index is still 0.8 percent below its April level, on our calculation.

Germany rose 9.3 percent on the month. Its annual growth reached 10.5 percent. In none of the five earlier months in the release did it top 2.2 percent, on our reading. The German index climbed to 99.9, leaving output 0.1 percent short of its 2021 average, on our reading.

Romania grew 7.2 percent on the month. Its 39.0 percent annual rise was the largest among member states. Its index has risen 24.9 percent since March, on our calculation, to 173.9.

Of the 18 member states with August data, 10 grew on the month, 6 fell and 2 were flat, on our count. On the year, 11 grew and 7 declined, on our count. EU output was 2.6 percent higher on the year. That beat the euro area’s annual rate by 1.2 percentage points, on our calculation.

Selected member states, August 2026

The index is calendar and seasonally adjusted. Estonia, Greece, Croatia, Cyprus, Latvia, Lithuania, Luxembourg and Malta are not required to supply monthly data within 1 month and 15 days after the end of the reference month; Ireland’s figures are confidential.

France, Spain, Italy and Slovakia shrink on the year

Of Germany, France, Italy and Spain, only Germany grew on the year, on our reading. France and Spain each added 0.7 percent on the month. Italy fell 2.9 percent.

France had the steepest annual fall among member states, at 7.8 percent. Its annual rate has worsened in each of the last three months, on our count, from a 0.7 percent decline in May. French output sits 11.8 percent below its 2021 average, on our reading.

Spain’s annual decline narrowed to 4.3 percent in August. In July it was 10.6 percent. The rate improved by 6.3 percentage points, on our calculation.

Italy’s index has fallen 5.7 percent since May’s 143.3, on our calculation. Italian output is still 35.2 percent above its 2021 average, a higher level than Germany, France or Spain, on our reading.

Slovakia fell 4.9 percent both on the month and on the year. Its index dropped to 81.9, the lowest of its six readings in the release, on our reading. The index is 16.2 percent below its March level, on our calculation.

Euro area and EU construction index, March to August 2026

Calendar and seasonally adjusted, 2021=100, as published on 20 October 2026. Before seasonal adjustment, the calendar-adjusted euro area index read 84.0 in August against 109.6 in July, a 23.4 percent drop on our calculation; the adjusted series is the basis for the monthly changes in the text.

Why it matters: August is a first estimate, and one strong month does not settle the trend. Still, euro area output reached its highest level of the six months in the release, on our reading, and the annual rate turned positive. Building work is the soft spot: it shrank on the year in all six months in the release, on our count. In France, the annual decline has deepened for three months running, on our count.

Outlook: Eurostat’s next construction release is due on 19 November 2026. The July revision shows these figures can move. The next release will show whether Germany keeps its new level and whether building output narrows its annual decline again.

Sources: Eurostat, The Edge.

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