18.08.201007:08:00UTC+00Spain Drives Eurozone Construction Rebound

Eurozone construction rebounded strongly in June led by higher output in Spain, official figures showed on Wednesday.

Construction output in the 16-nation region rose 2.7% in June from May, reversing the 0.7% decline in the previous month. Building construction climbed 3.3%, while civil engineering output was up 1.2%.

The rise was driven by a 7.2% jump in output in Spain. Construction declined 0.9% in Germany, while it increased 0.1% in France.

On a year-over-year basis, construction output grew 3.1% compared to a revised 6.2% fall in the previous month.

The official figures from Eurostat also showed that construction in the European Union rose 3.5% in June from May. Year-on-year, output rose 3.1%.

The largest monthly increase was recorded in Romania, up 16.5%. Construction rose 2.7% in the U.K.

The eurozone economy expanded 1% in the April to June quarter, following a 0.2% expansion in the final quarter of last year, as the weak euro and lingering stimulus support propped up growth. However, observers say this recovery is unlikely to be sustained as the region's collective austerity drive eventually takes its toll.

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