Yet another sign that the Eurozone economic recovery is stalling

Nassos Stylianou
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Eurozone construction output took a tumble in May (Source: Getty)

This time it's construction.

Construction output across the Eurozone dipped 1.5 per cent in May compared with April, according to the EU's statistics agency with the up until now powerhouse of the recovery, Germany, leading the index down.

Civil engineering fell by three per cent and building construction by 1.1 per cent in the 18-member euro area.

Production in construction in Germany plunged by 4.9 per cent in May, with analysts suggesting that this could reflect the impact of the European mild winter, given that the figures are seasonally adjusted.

Today's worrying release comes just days after figures showed a steep decline in industrial output across the Eurozone for May. Industrial production fell sharply by 1.1 per cent in May, making it the largest monthly drop since September 2012.

Economists have suggested that some of the disappointing data from May could partly be explained by the timing of the big public holiday which saw workers take an extra day off at the start of the month, but the short term outlook is hardly rosy either. Business surveys for June have also pointed to a slowing of the economic recovery.

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