Romania’s construction works up 2.8% y/y in Q2

The construction works volume index increased by 2.8% y/y and by 1.4% q/q in seasonally-adjusted terms in Q2, according to data published by the statistics office INS. In Q1, the index rose by 10.6% y/y on low base effects after unusually weak performance in January-February 2024.

In 2024, the construction activity eased by 5.9% y/y after double-digit growth rates in the previous two years; therefore, the advance seen in 2025 marks a correction.

The performance in Q2 was particularly backed by outstanding +8.8% y/y (+4.5% m/m) growth in June.

The civil engineering works segment has driven the annual growth in Q2 this year with a robust 6.7% y/y advance, while the construction of both residential and non-residential buildings contracted by 1.5% y/y each.

The public investment projects, which account for roughly half of the construction market, will be subject to restrictions starting with Q4 this year as the government is striving to observe the limited budget.

Overcontracting in the past years has resulted in significant amounts of overdue bills to contractors, which should be addressed along the fiscal consolidation process. This means that the growth of the segment is likely to moderate, a pattern also expected for the residential segment, hit by households’ budgets constrained by the austerity measures as well as by the higher taxation.

The complex non-residential segment has stagnated over the past several years despite vibrant logistics and industrial markets, and remains subject to diverging trends among its sub-segments.

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