Construction output in Spain falls 13.9%

EditorialRoom 31st October 2021

Construction production in Spain dropped 13.9% year-on-year in August, marking the biggest rate of decrease among EU member states for which data is available, Eurostat data showed.

In August 2021 compared with August 2020, production in construction decreased by 1.6% in the euro area and by
1.0% in the EU, the statistical office of the European Union said.

The largest annual decreases in production in construction
were observed in Spain (-13.9%), Romania (-7.0%) and Slovenia (-6.8%). The largest increases were recorded in Hungary (+10.2%), Poland (+7.9%) and Finland (+4.7%),

In the euro area in August 2021, compared with August 2020, civil engineering decreased by 2.9% and building construction by 1.3%. In the EU civil engineering decreased by 1.5% and building construction by 0.7%.

In August 2021 compared with July 2021, seasonally adjusted production in the construction sector decreased by 1.3% in the euro area and by 1.8% in the EU. In July 2021, production in construction rose by 0.1% in both the euro area and in the EU.

In the euro area in August 2021, compared with July 2021, civil engineering decreased by 1.9% and building construction by 1.3%. In the EU, building construction decreased by 2.1% and civil engineering by 1.4%.

Among Member States for which data are available, the largest monthly decreases in production in construction
were recorded in Sweden (-10.5%), Hungary (-5.9%) and Germany (-3.1%). The highest increases were observed in Portugal (+2.4%), Slovakia (+1.9%) and Poland (+1.6%), Eurostat said.

“Supply chain disruptions, due to the Covid-crisis, decreased the supply of building materials. This resulted in shortages and price hikes. In August, a record percentage (15%) of EU contractors indicated lower production due to a lack, or delayed delivery of building materials. Shortages are especially high in Germany, Austria and the Netherlands as production levels, and therefore demand for inputs, have remained relatively high in these countries.

ING expects that these building material shortages will continue until at least the beginning of 2022. However, according to a European Commission survey, there are almost no construction firms that mention a shortage of building materials in France, Spain and Turkey.”