European construction output declines for third month
European construction output dropped for a third month in November as declines in France and Spain offset rebounds in Germany and Portugal.
Construction in the 16-nation euro region fell 1.1 percent from October, when it dropped a revised 0.4 percent, the European Union’s statistics office in Luxembourg said in a statement today. From a year earlier, November output decreased 8 percent.
European builders have cut spending and output after the worst global recession in more than six decades eroded demand for housing and infrastructure projects. While the euro region’s economy returned to growth in the third quarter,
“European builders are still grappling with the crisis,” said Stefan Bielmeier, an economist at Deutsche Bank AG in Frankfurt. “While some euro-region economies are gathering strength, driven by infrastructure projects, demand for new housing should not significantly pick up anytime soon.”
For euro-area construction, the statistics office previously reported a drop of 0.6 per cent in October from the previous month. In the 27-nation EU, November construction output dropped 0.6 per cent from October and 6.7 per cent from the year-earlier month.
In Germany, Europe’s biggest economy, construction rose 0.7 percent in November from the previous month, while Portugal showed a 4.1 percent gain, according to today’s report. French output fell 0.4 percent and Spanish construction declined 3.5 percent from October.
Published under Cement News
