Eurozone construction downturn slows further in July - IHS Markit

According to the report from IHS Markit, the Eurozone Construction Total Activity Index rose from 48.3 in June to 48.9 in July, indicating the weakest decline in construction activity across the eurozone in the current five-month sequence. Survey data showed Italy recorded construction output growth, while Germany and France posted declines.

The level of work undertaken on home construction projects in the eurozone was fractionally lower at the start of the third quarter. A decline in housing construction activity in France was almost offset by increases in home building activity in Germany and Italy.

Commercial building activity across the eurozone continued to fall in July. The rate of decline slowed further from April's record, but was marked overall. The decline was driven by Germany and France, with the latter doing so after an increase in June. Italy reported further growth, albeit the slowest in the current three-month sequence.

Meanwhile, eurozone civil engineering activity fell further in July, extending the current sequence of contraction to a year. The rate of decline moderated from June and was modest overall. National data revealed that only France posted growth, while Germany and Italy continued to report a decline in civil engineering. Among the eurozone's three largest economies, only Italy registered growth in construction output during July, which remained modest overall. On the other hand, Germany and France registered declines in construction activity, with the former recording the steeper rate of decrease.

Overall sentiment among eurozone building companies turned positive in July, as indicated by the Future Activity Index rising above the neutral 50.0 level for the first time since February. Italian constructors' confidence surged to the highest for over nine years, with a number of firms citing the 110% ecobonus as a reason for optimism.