Slovak construction sector rebounds in November 2024 after six months of decline

After a prolonged period of contraction, the construction sector in November 2024 achieved comparable year-on-year results, marking a significant turnaround. The improvement was largely driven by increased output from international projects and robust growth in smaller components of domestic production.

Construction output for November reached €827.5 million, reflecting a year-on-year increase of 0.9%. This marked the first positive year-on-year result after six consecutive months of decline. Month-on-month, the sector also showed notable improvement, with construction production rising by 5.4%.

Despite the overall improvement, key components of domestic construction production remained in negative territory. New construction declined by 2.3%, while repairs and maintenance dropped by 2.5%. However, these declines were the smallest recorded since the beginning of 2024. The only domestic segment to show significant growth was “other construction works,” which increased by nearly one-third, though its contribution to overall domestic production remains relatively minor. Domestic construction production continues to account for nearly 90% of the industry’s total performance.

By construction type, building construction showed a positive trend, rising by 7.6% year-on-year. In contrast, engineering construction, including infrastructure projects such as highways, saw a further slowdown, with output decreasing by 11% compared to November 2023.

A major contributor to the sector’s recovery was the strong performance of construction companies operating abroad. International construction output increased by 18.7% year-on-year, raising its share in the total sector output to over 10%.

For the first 11 months of 2024, the total value of construction production reached €6.7 billion, representing a year-on-year decline of 5.9%. All components of domestic production experienced slowdowns, with new construction falling by 7.7% and repairs and maintenance declining by 3.5%. By focus area, building construction decreased by 3.2%, while engineering construction dropped more sharply, by 12.8%. In contrast, international construction output remained stable compared to the same period in 2023.

The November recovery offers a glimmer of optimism for the construction sector, though challenges remain in key domestic segments. The strong growth in international projects underscores the importance of diversification in driving overall industry performance.

Source: Statistical Office of the SR