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- Eurozone construction PMI fell to a three-month low in May
Eurozone construction PMI fell to a three-month low in May
According to the report from IHS Markit, eurozone construction firms recorded a further rise in activity midway through the second quarter, but the pace of growth eased to the softest for four months. A key factor behind the slowdown the first decline in new orders since last August. Meanwhile, firms continued to increase both their staff numbers and input buying, albeit at slower rates compared to April. On the cost front, input prices continued to rise markedly. However, the rate of inflation decelerated to the softest for 22 months
Falling 52.1 in April to 50.6 in May, the Eurozone Construction PMI pointed to a marginal rise in total construction activity, with the rate of growth easing from April. Across the euro area's three largest economies, the quickest expansion was seen in Germany, followed by France. Meanwhile, Italian builders reported their first decline in activity since March 2018, although it was only fractional overall.
The strongest-performing sub-sector was again housing. Although the rate of growth eased and was only modest overall, home building recorded an increase in activity for the ninth month in a row. There was also a slight rise in commercial activity, with the pace of expansion decelerating from April. However, civil engineering work fell at the fastest rate since July 2016.
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