Construction BUSINESS

Seasonally-adjusted production in the construction sector increased by 0.4% in both the euro area and the 28 EU member states in November compared with October, Eurostat, the statistical office of the European Union, announced on Wednesday. In October 2016, production in construction grew by 0.4% in the euro area and by 0.3% in the EU. Compared with November 2015, production in construction remained stable in the euro area and rose by 0.2% in the EU.

This increase in construction production appears to reflect increases in  house prices across the EU. As measured by the House Price Index,  house prices rose by 3.4% in the euro area and by 4.3% in the EU in the third quarter of 2016 compared with the same quarter of the previous year, according to figures released by from Eurostat on Thursday.

Compared with the second quarter of 2016, house prices rose by 1.3% in the euro area and by 1.5% in the EU in
the third quarter of 2016.

Among the Member States for which data are available, the highest annual increases in house prices in the third quarter of 2016 were recorded in Hungary (+11.6%), Latvia (+10.8%) and Bulgaria (+8.8%), while falls were observed in Cyprus (-3.3%) and Italy (-0.9%). Compared with the previous quarter, the highest increases were recorded in Malta (+5.4%), Ireland (+4.7%), Estonia, Lithuania and Hungary (all +3.4%), while a decrease was observed in Romania (-0.7%).