(Alliance News) - Construction activity in the euro area and wider European Union edged up in March, reversing part of February's decline, though output remained lower than a year earlier, data from Eurostat showed on Wednesday.

Seasonally adjusted production in construction rose by 0.1% in both the euro area and the EU compared with February. This follows monthly drops of 1.2% and 1.1%, respectively, in February from January.

The modest rebound in March was driven by gains in civil engineering, which rose 4.1% in the euro area and 2.5% in the wider EU. Building construction also grew, up 0.9% in the eurozone and 0.8% in the EU. Specialised construction activities increased slightly by 0.1% in both areas.

Among member states with available data, Austria posted the strongest monthly growth at 5.9%, followed by Romania with 4.6% and Czechia at 3.5%. Portugal, Slovenia and Poland recorded the largest declines, down 4.3%, 4.0% and 3.7%, respectively.

However, on an annual basis, construction production in March fell by 1.1% in the euro area and by 0.7% in the EU. The sector was dragged down by a 2.9% decline in building construction in the eurozone and a 1.6% drop in the EU. Civil engineering and specialised construction activities posted modest year-on-year gains of 0.8% and 1.0%, respectively.

The sharpest annual declines were seen in Slovenia, down 12%, Belgium, down 6.6%, and Spain, down 6.0%, while Czechia, up 12%, Bulgaria, up 8.8%, and Austria, up 7.4%, led growth.

By Eva Castanedo, Alliance News reporter

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