Euro-Area Construction Rises for Third Month on German Rebound

Construction output in the euro area rose for a third month in June, driven by a rebound in Germany, as the 17-nation currency bloc emerged from a record-long recession.

Construction in the euro zone increased 0.7 percent from May, when it gained 0.5 percent, the European Union’s statistics office in Luxembourg said today. The May figure was revised from an initial estimate of a 0.3 percent decline. From a year earlier, June construction declined 3 percent.

“Although recent economic indicators suggest that the euro zone may be emerging from recession, overall construction activity remains weak and we expect challenging trading conditions in Europe for the remainder of 2013,” Myles Lee, chief executive officer of CRH Plc (CRH), said in a statement today. Dublin-based building-materials producer CRH is the biggest company on the benchmark Irish stock index.

While gross domestic product in the euro area rose 0.3 percent in the three months through June, ending six straight quarters of contraction, the unemployment rate remains at a record 12.1 percent.

Construction in Germany, Europe’s largest economy, expanded 1.6 percent in June after a 1.3 percent decrease in the previous month. Output was unchanged in France and Spain, while the Netherlands saw a 0.8 percent decline in the latest month.

To contact the reporter on this story: Patrick Henry in Brussels at

To contact the editor responsible for this story: Fergal O’Brien at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.