The Spanish construction sector was 34.7% smaller in August than 12 months earlier, according to the latest data from Eurostat.
Spanish construction output fell 1.8% on a monthly basis, second only to Holland (-2.6%). The yearly fall of 34.7% was the biggest in the EU, followed by Romania (-20.4%) and Holland (-14.1%).
For a collapsing construction sector, Spain is in a class of its own. As Edward Hugh points out at his Facebook page, the sector is now 45% smaller than it was at its peak in 2006. He thinks there is more pain to come.
The chart above helps explain why unemployment in Spain stands at 20%. Unemployed people don’t buy houses, so unemployment prolongs the housing glut.
