Euro-Area Construction Rises for Third Month on German ReboundPatrick Henry
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, 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.