Financiarul

Romania has reported the largest decrease in construction output in the European Union, both on a monthly basis and year on year this August, after being a 2008 absolute leader in the field of construction, according to data released by the Eurostat European statistics institute on Tuesday.

Construction output in August 2009 was down 7.9 percent in Romania on a monthly basis, the largest decrease in any EU country, which added to a 10.6 percent monthly decrease in July 2009. August was the second consecutive month for which Romania reported the largest decrease in the construction output.

In the construction sector, seasonally adjusted production decreased by 0.4 percent in Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland, and by 0.5 percent in the entire EU in August 2009, compared with the previous month. In July, production fell by 1.4 percent and 0.5 percent respectively.

In annual terms, Romania also recorded the largest decrease in construction output in August 2009, compared with August 2008, of minus 29 percent, almost double the 17.4 percent decrease in July. The decrease in Romania’s August 2009 construction output was larger than Spain’s 21.1 percent and Slovenia’s 19. 6 percent.

Among the member states for which data are available for August 2009, construction output rose in four and fell in eight. The highest increases were registered in Poland (+9.9 percent), Sweden (+9.5 percent) and Germany (+1.9 percent), and the largest decreases in Romania (-29.0 percent), Spain (-21.1 percent) and Slovenia (-19.6 percent).

Building construction fell by 15.9 percent in Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland and by 15.0 percent in the EU27, after -12.2 percent and -13.2 percent respectively in July. Civil engineering increased by 3.5 percent in Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland, and by 5.2 percent in the entire EU , after -2.2 percent and +0 6 percent respectively in the previous month.

Data with Romania’s National Statistics Institute (INS) indicates a decline of 13.3 percent in the country’s construction output January 1 – August 31, 2009, year on year. Construction output adjusted for business days and seasonality was down 7.9 percent on a monthly basis in August 2009. Residential construction as down 22.3 percent and 4.4 percent down for civil engineering works.

Non-residential construction works were slightly up 0.1 percent. Compared with August 2008, the construction output was down 29.3 percent, down 42.3 percent for residential works, 26.7 percent for non-residential works and 23.9 percent down for civil engineering works.