Romania's construction activity reaches new record despite slower July growth

Romania’s construction activity grew by 2.0% year-on-year in July, slowing sharply from 18.0% in the second quarter and 7.7% in the first quarter, but the sector’s seasonally and workday-adjusted volume reached its second-highest level on record, according to data published by the National Institute of Statistics (INS).

The relatively modest annual increase was largely a base-effect story, as construction activity had already reached its highest adjusted level in July 2025  (largely due to accounting reasons following the VAT rate hike in August 2025). Despite the slowdown in annual growth, the sector has continued to expand through 2026 and was around 60% above its average 2021 level in July on a seasonally and workday-adjusted basis.

Construction has been the main driver of Romania’s economic growth in the first half of the year. Value added generated by the sector increased by 7.9% year-on-year in the first quarter and 15.3% in the second quarter, according to national accounts data.

Residential construction remained the strongest component in July, with activity increasing by 10.8% year-on-year. The segment had also recorded strong growth in the first half of the year, advancing by 24.9% in the second quarter and 14.7% in the first quarter.

Civil engineering activity, by contrast, declined by 0.5% year-on-year in July. This followed much stronger performances earlier in the year, with activity increasing by 17.1% in the second quarter and 8.6% in the first quarter, driven by PNRR/RRF projects that are expected to exert a positive impact in H2 as well.

Non-residential construction rose by 1.3% year-on-year in July, extending a relatively mixed performance. The segment grew by 15.2% in the second quarter but by only 0.9% in the first quarter.

The different segments remain well above their 2021 benchmarks. Civil engineering works were 92% above the 2021 average in July, while non-residential construction was 60% higher. Residential construction was 19% above its 2021 average.

The continued high level of construction activity contrasts with the weakness in other parts of the Romanian economy, with construction providing a significant contribution to output despite slower annual growth in July.

The data suggest that the sector entered the second half of 2026 from a historically high activity level, even as comparisons with the exceptionally strong July 2025 base have reduced its headline annual growth rate.