Spain suffered the biggest drop in construction in the entire EU in August

The The construction sector already warned a few days ago of the problems that companies are suffering due to the lack of raw materials, which has led to delays of more than half of the works over the last three months. Now, Eurostat confirms that Spain is the EU country where construction fell the most during last August.

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A month that registered a year-on-year decline of 13.9%, according to information collected by Europa Press. In July, the drop was slightly lower, 12.3%. In that month of August, the European Union as a whole experienced an average drop of 1% year-on-year, while in the euro area the drop was 1.6% compared to the same month in 2020.

Compared to the previous month, construction activity in Spain decreased by 1.5% in August, after falling 1.7% monthly in July. Among the 27, construction fell by 1.8% in the eighth month of the year and in the euro zone by 1.3%, after rising 0.1% monthly in July in both cases.

Apart from Spain, the largest year-on-year declines in construction activity in the EU corresponded to Romania (-7%) and Slovenia (-6.8%), while the largest increases were observed in Hungary (+ 10.2%) , Poland (+ 7.9%) and Finland (+ 4.7%).

Compared to the previous month, the most significant decreases in construction among the Twenty-seven were registered in Sweden (-10.5%), Hungary (-5.9%) and Germany (-3.1%). In contrast, the most pronounced increases in construction activity corresponded in August to Portugal (+ 2.4%), Slovakia (+ 1.9%) and Poland (+ 1.6%).

Delays and more expensive raw materials

The sector's employers' association, the National Construction Confederation (CNC) announced last Friday that, according to a survey carried out with 300 companies in the sector, 75% of them "have suffered some shortage or unusual delay, especially wood, aluminum or steel ". For example, in the case of machinery or vehicles, the delays in delivery times are 90 days.

At the same time, 94% of construction companies perceive a rise in prices, which have made the total cost of works more expensive by 22.2%. In the case of wood, 125%, 63% in copper, 56% in asphalt, or 35% in electricity. "40% of the companies have forced to cancel a contract or paralyze works," summarized the employer's association at the time.


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