span>Thursday/span>17th June 2021 - 10:55 (BST)
Figures released by Eurostat have shown EU construction output increased at its fastest ever pace over April as demand for new buildings gathers pace. Growing 42.3% year-on-year, it marks a resilient bounce-back for a sector badly hit by the pandemic over 2020 and represent the highest reading since records began in January 1996.
The news comes following the European Construction Industry Federations (FIEC) open letter to the European Commission expressing “alarm” at soaring material costs, warning that the issue could derail economic recovery efforts across the bloc if not better managed.
The price of asphalt, wood, polyethylene and copper have all risen dramatically as global supply chains struggle to keep up with demand under coronavirus-related restrictions.
The euro lost 0.5% against the pound following the news, pulled further by the hawkish tone from the Federal Reserve yesterday evening. The US central bank left base rates unchanged but policymakers signalled they expect two increases by the end of 2023.
Elsewhere, EU inflation remained constant over May - rising 0.2% over the month and 2% year-on-year. Attentions now turn to next weeks European Council meeting where further analysis of its upcoming spending plans will be discussed.
