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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%.

Mirendil Signs $100 Million Google Cloud Deal To Advance Self-Improving AI

AI startup Mirendil has signed a multi-year agreement worth more than $100 million with Google Cloud to secure computing infrastructure for its self-improving AI research.

The partnership reflects growing competition among AI companies to lock in access to high-performance computing, while cloud providers race to attract promising startups developing next-generation AI models.

Backing The Next Stage Of AI Research

Mirendil plans to use Google’s Tensor Processing Units (TPUs), Nvidia GPUs and managed training infrastructure to develop AI systems capable of improving their own performance over time.

Known as recursive self-improvement, the concept focuses on building AI that can refine its knowledge and capabilities with minimal human intervention. The technology is attracting growing interest across the industry, with several startups and leading AI labs exploring similar approaches.

According to co-founder and Chief Executive Behnam Neyshabur, the long-term goal is to develop AI that can automate scientific research and accelerate discoveries in fields such as medicine, biology and materials science.

Compute Capacity Becomes A Strategic Asset

Training increasingly advanced AI models requires enormous computing resources, making long-term infrastructure agreements a critical competitive advantage.

Mirendil said Google’s combination of TPUs and GPUs allows workloads to be matched with the most suitable hardware, improving efficiency while reducing costs for customers.

For Google Cloud, the agreement strengthens its position in the race to provide infrastructure for frontier AI developers, while giving the company exposure to one of the industry’s emerging approaches to next-generation artificial intelligence.

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