The production of the construction sector fell 12.7% in June compared to the same month in 2025, once seasonal and calendar effects were corrected. The decline is mainly explained by the collapse of building construction, whose activity decreased by 42% year-on-year, according to data published this Thursday by the National Institute of Statistics (INE).
The result confirms the deterioration that the sector is experiencing in 2026: construction production has accumulated six consecutive months of year-on-year declines in the adjusted series. However, compared to May, activity experienced a slight advance of 0.3%.
Building construction falls by 42%
The setback was not homogeneous across all branches of construction. The largest drop was again concentrated in building construction, which reduced its production by 42% compared to June 2025 in corrected terms.
Civil engineering, which in previous months had partially compensated for the deterioration of building construction, also entered negative territory, although with a much more moderate decline of 0.9%.
Specialized construction activities were the only division that maintained a positive trend. Its production increased by 0.4% year-on-year.
| Activity | Corrected annual variation | Evolution |
|---|---|---|
| Total construction | -12.7% | Decline |
| Building construction | -42.0% | Strong decline |
| Civil engineering | -0.9% | Slight decline |
| Specialized construction activities | +0.4% | Increase |
The fall moderates when observing the uncorrected data
In the original series, which does not eliminate calendar differences or seasonal patterns, construction production decreased by 8.5% year-on-year. Building construction also led the decline in this measurement, with a drop of 38.1%. In contrast, specialized activities increased by 1.7%.
The difference between the original rate of -8.5% and the corrected rate of -12.7% is due to the statistical treatment of seasonal and calendar effects.
| June indicator | Variation |
|---|---|
| Corrected annual rate of seasonality and calendar | -12.7% |
| Annual rate of the original series | -8.5% |
| Corrected monthly variation | +0.3% |
Production improves slightly compared to May
The monthly comparison offers a less negative signal. Between May and June, construction production increased by 0.3%, once seasonal and calendar effects were eliminated. This advance contrasts with the monthly decline recorded in May and represents an improvement of 3.6 points in the monthly rate. However, it is insufficient to compensate for the accumulated loss of activity over the last few months.
Building construction advanced by 0.5% compared to May, while civil engineering recorded a monthly drop of 5.1%.
Six months of setbacks in the adjusted series
The adjusted series from the INE shows negative year-on-year rates during all the months that have passed in 2026:
| Month of 2026 | Corrected annual variation |
|---|---|
| January | -16.3% |
| February | -14.4% |
| March | -8.6% |
| April | -3.8% |
| May | -11.9% |
| June | -12.7% |
The evolution shows that the deterioration moderated until April, but intensified again during May and June.
What this indicator really measures
The Construction Production Index, known as IPCO, measures the short-term evolution of the added value generated by construction activity. It includes building construction, civil engineering, and specialized activities.
Therefore, it does not directly measure housing prices, the number of sales, nor exclusively the construction of new houses. It also does not allow for concluding on its own that all works or real estate developments have decreased by 12.7%.
The indicator is compiled monthly from approximately 3,600 economic units spread across Spain. This new INE statistic replaced the previous Construction Industry Production Index Survey, prepared by the Ministry of Transport, in 2026.
The results for 2025 and 2026 are based on estimates that combine information from both statistical operations, a circumstance that must be taken into account when interpreting the recent evolution. The data for June is also provisional.