Monthly Recovery After Autumn Dip
Construction activity in the European Union strengthened in December 2025, rising 1.2% compared with November, according to preliminary figures from Eurostat. In the eurozone, output increased by 0.9% month over month.
The rebound followed a 1.5% contraction in November across both regions, signaling a modest recovery toward the end of the year.
Despite the monthly improvement, annual figures remained subdued. Construction output declined 0.9% year over year in the euro area and was flat across the broader EU. For 2025 as a whole, total construction activity in the European Union expanded by just 0.5%, reflecting only limited momentum.
Engineering Leads, Housing Lags
Civil engineering projects delivered the strongest gains. In the EU, civil engineering output climbed 3.9% month over month, outperforming building construction, which rose 1.2%, and specialized construction activities, which increased 0.9%.
Within the eurozone, civil engineering posted a 2.3% monthly rise, while building construction and specialized activities grew by 0.9% and 0.6%, respectively.
The residential segment continues to face headwinds, as higher borrowing costs and softer demand have weighed on housing investment in several member states.
Mixed Performance Across Member States
Among individual countries, Hungary recorded the strongest monthly growth at 6.6%, followed by Poland at 5.1% and Slovakia at 4.0%.
Austria posted the sharpest contraction at 9.2%, while Slovenia and Bulgaria saw declines of 3.2% and 2.3%, respectively.
Broader Outlook Remains Cautious
Looking beyond December’s rebound, the broader trend remains fragile. The average annual construction output in the EU declined by 1.3% in 2024 compared with 2023.
According to industry association Eurofer, the construction sector, a major consumer of steel, continued to face weakness in 2025. After a 2% decline in 2024, output was projected to grow by 1.1% in 2025, before moderating slightly to 0.8% in 2026.
The latest data suggest that while engineering projects are providing support, a sustained recovery in the overall European construction sector will likely depend on stronger residential demand and improved economic conditions across the bloc.