EU Construction Output Rises - Bad News for Spain?

Construction output increased by 3.2% in April on a monthly basis, this is quite shocking given the problems with over-supply in the Spanish property market. This against the back-drop of a rise of 0.7% in construction output throughout the UK.

I contacted a representative of Eurostat last month, when construction decreased in the EU, to see if decreasing construction output was good news in light of the over-supply problems. They told me that it wasn't because in general decreasing construction output is a sign of economic decline.

So, now construction output is rising in the EU this is yet another positive economic sign, but I still can't help thinking that construction output increasing by such a large deficit in Spain is bad news for the housing market and its over-supply problems.

Construction output also rose by 5.2% in the Czech Republic, and 2.9% in Sweden, whereas it fell 12.1% in Slovenia, 6.1% in Romania, and 3.1% in Slovakia.

This is the first monthly rise in EU construction output, and it could just be a statistical anomaly. Annually construction output is still falling.