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Extreme summer weather: what does it mean for euro area construction output?

Author

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  • Gareis, Johannes

Abstract

Summer 2026 brought repeated episodes of extreme heat to large parts of the euro area. This box assesses the implications for euro area construction output. Survey data from the European Commission show that the share of construction firms citing weather as a factor limiting their activity was exceptionally high, reaching a record level in August and remaining elevated in September. Estimates based on country and sector data suggest that such disruption lowers construction output temporarily, with losses in a given month typically made up in the following month. This summer’s weather is estimated to have lowered construction output by around 0.2% in July, 0.3% in August and 0.1% in September. The overall impact is small and should be short-lived, but the effect of extreme summer weather could become more persistent if extreme heat becomes more frequent and longer-lasting. JEL Classification: E32, L74, Q54

Suggested Citation

  • Gareis, Johannes, 2026. "Extreme summer weather: what does it mean for euro area construction output?," Economic Bulletin Boxes, European Central Bank, vol. 7.
    • Handle: RePEc:ecb:ecbbox:2026:0007:2
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    Keywords

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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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