Eurostat, the statistical office of the European Union (EU), reported on Monday that construction output in the eurozone plunged 2.4 percent m-o-m in March 2023 after increasing by 1.7 percent m-o-m in February. Economists had expected an increase by 0.7 percent. Building construction declined by 2.4 percent compared to February and civil engineering by 2.3 percent.
On a y-o-y basis, construction output dropped 1.5 percent in March, following a 2.1 percent rise in the previous month (revised from +2.3 percent). That was the sharpest contraction in construction output since August 2021.
According to the report, the annual decline in March reflected a 2.2 percent decline in civil engineering construction output and a 1.3 percent drop in building construction.
Meanwhile, in the EU countries, the volume of construction fell by 1.9 percent on a monthly basis and 1.2 percent compared to March 2022. Compared to February, civil engineering declined by 2.3 percent and building construction by 1.8 percent. In annual terms, civil engineering declined by 1.8 percent and building construction by 1.2 percent