The construction works volume in Romania surged by 13.9% y/y after the impressive 14.2% y/y in Q3 – when the sector contributed significantly to the country's GDP advance, thanks to the strongest advance in value added terms (+12.1% y/y) in seven quarters. The outstanding advance in October was driven, however, by low base effects (unusually subdued activity reported in October 2024).

In the 12 months to October, the construction works volume increased by 4.6% y/y, while the annual increase calculated for the first ten months of the year was 10% y/y.

In seasonally adjusted terms, the constructors' activity in October in fact edged down by 1.9% m/m, reversing part of the 8.5% m/m advance in September along a pattern of volatile activity.

By category of projects, the civil engineering works have demonstrated a slight downward trend through 2025, unlike the other two market segments (residential and non-residential buildings). July's unusually high readings were possibly prompted by companies rushing to report work ahead of the VAT rate hike. 

In annual terms, the volume of civil engineering works in October 2025 still increased by 4.6% y/y while posting a 5.6% m/m decline and marking the second-lowest volume reading during the year (in seasonally adjusted terms). The prioritisation of public projects and the postponement of some of them amid efforts for fiscal consolidation surfaced in the volume of construction works and is likely to further moderate the expansion of this particular market segment.

The volume of works for residential and non-residential building projects increased by 16.6% y/y and 33.4% y/y, respectively, after similarly high (20%-30% y/y) growth rates in Q3.

iulian@romania-insider.com

(Photo source: Yury Sevryuk/Dreamstime.com)