European construction output rose in November after three months of contraction, led by Germany, adding to signs that the euro-area economy may be stabilizing. Construction (EUCPTSAM) in the 17-nation single-currency region advanced 0.8 percent from October, when it fell 1.4 percent, the European Union’s statistics office in Luxembourg said today. From a year earlier, November output was up 0.2 percent. European Central Bank President Mario Draghi said on Jan. 12 that the euro-area economy is showing “tentative signs of a stabilization in activity at low levels.� While Draghi still warned of “substantial downside risks,� the central bank voted to keep interest rates at a record low. The euro-area economy may contract 0.3 percent this year, compared with a previous estimate of a 1.8 percent gain, the Washington-based World Bank said in its Global Economic Prospects report released today in Asia and yesterday in the U.S. The ECB forecasts expansion of 0.3 percent this year, while the European Commission sees growth at 0.5 percent. Construction output in Germany, Europe’s largest economy, increased 4.5 percent from October, when it rose 1.6 percent, according to today’s report. French construction was up 0.8 percent in the month, while in Spain, building fell 0.7 percent. In the 27-nation European Union, construction output rose 0.4 percent in the month. To contact the reporter on this story: Patrick Henry in Brussels at phenry8@bloomberg.net To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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