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- Eurozone construction downturn quickens in August - IHS Markit
Eurozone construction downturn quickens in August - IHS Markit
According to the report from IHS Markit, Eurozone Construction Total Activity Index fell from 48.9 in July to 47.8 in August, indicating the sharpest decline in construction activity across the eurozone for three months. Survey data showed a broad-based downturn in output across the three sectors, with the sharpest decline recorded in civil engineering activity, followed by commercial building output.
The level of work undertaken on home construction projects in the eurozone was marginally lower during August. Mild growth in housing construction activity in Germany and Italy was insufficient to offset a solid decline in home building activity in France.
Commercial building activity across the eurozone continued to fall in the middle of the third quarter. The rate of decline quickened from July and was marked overall.
Meanwhile, eurozone civil engineering activity fell further in August, extending the current sequence of contraction to just over a year. The rate of decline accelerated from July and was marked overall.
New business received by eurozone construction firms fell further in August, though the rate of decline eased again and was the slowest in the current six-month sequence. Greater competition was cited as a reason for lower sales. Employment in the eurozone construction sector was reduced further in August amid lower activity. The rate of reduction eased from July, however, and was the softest in the current six-month period of decline.
Overall sentiment among eurozone building companies turned negative again in August.
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