Breaking news

Construction Output Rises As Specialized Activity Offsets Broader Weakness

Construction output in the euro area and the European Union increased modestly in May 2026, with growth in specialized construction activities offsetting weaker building construction and civil engineering, according to Eurostat.

Monthly Growth Remains Positive

Seasonally adjusted construction production rose 0.4% in the euro area and 0.3% across the EU compared with April, following gains of 0.1% and 0.5%, respectively, a month earlier.

Annual Output Continues To Rise

Compared with May 2025, construction output increased 1.2% in the euro area and 1.8% across the EU, although performance varied across different parts of the sector.

Building construction declined 0.7% in the euro area and 0.4% across the EU from the previous month, while civil engineering fell 0.5% and 1.3%, respectively. Specialized construction activities, however, increased 1.4% in both regions, supporting overall growth.

Member State Results Varied

Among member states reporting monthly data, Austria recorded the largest increase in construction output at 3.3%, followed by the Netherlands at 2.0% and France at 1.3%. Hungary posted the steepest decline, with output falling 6.4%, ahead of Spain at 2.8% and Slovenia at 1.9%.

Annual Trends Remained Mixed

Compared with a year earlier, building construction fell 6.6% in the euro area and 5.2% across the EU. Civil engineering, meanwhile, rose 3.5% and 2.3%, respectively, while specialized construction activities increased 2.9% in the euro area and 3.3% across the EU.

Slovenia recorded the strongest annual growth in construction output at 19.2%, followed by Slovakia at 10.0% and Finland at 9.4%. Spain posted the largest decline at 10.0%, ahead of Hungary at 6.7% and France at 0.7%.

Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

The Future Forbes Realty Global Properties
eCredo
Aretilaw firm
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter