Production in construction up by 0.1% in euro area

Being a member of the euro club continues offering confusing evidence of providing protection against the global economic downturn. In the construction sector, seasonally adjusted production rose by 0.1% in the euro area while it grew 1.6% in the European Union in May 2012, compared with the previous month. But in April 2012, production had decreased by 3.7% in the common currency region and 6.9% outside it.

Compared with May 2011, production in May 2012 dropped by 8.4% in the euro area and by 6.9% in the EU. These estimates were released by Eurostat, the statistical office of the European Union.

Month on month, among the member States for which data are available for May 2012, production in construction rose in eight, fell in six and remained stable in the Czech Republic. The highest increases were registered in the United Kingdom (+6.3%), Romania (+5.0%) and Portugal (+3.6%), and the largest decreases in Slovenia (-17.5%), Hungary (-4.1%) and Spain (-3.3%).

Building construction dropped by 0.2% in the euro area, but increased by 1.8% in the EU, after -3.6% and -7.7% respectively in April 2012. Civil engineering rose by 0.6% in the euro area and by 0.7% in the EU, after -3.9% and -4.8% respectively in the previous month.

In May 2012, year on year production in construction fell in twelve country members and rose in three. The largest decreases were registered in Spain (-24.8%), Slovenia (-23.7%) and Portugal (-16.4%), and the increases in Romania (+21.1%), Poland (+6.5%) and Germany (+2.2%).

Building construction declined by 8.6% in the euro area and by 6.3% in the EU, after -5.9% and -5.1% respectively in April 2012. Civil engineering decreased by 9.3% in the euro area and by 10.9% in the EU, after -9.3% and -10.9% respectively in the previous month.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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