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- Downturn in eurozone construction continues in December - IHS Markit
Downturn in eurozone construction continues in December - IHS Markit
According to the report from IHS Markit, the Eurozone Construction Total Activity Index slipped to 45.5 in December from 45.6 in November, signifying a further solid contraction in eurozone construction activity. The latest fall extended the current sequence of decline to ten months, although the rate of reduction remained far softer than at the nadir of the downturn caused by the coronavirus disease 2019 (COVID-19) pandemic in April.
Latest data showed a broad-based downturn in output across the three monitored sub sectors, with the sharpest decline recorded in commercial construction, followed by civil engineering activity. Meanwhile, housing activity fell once again in December. Home building among eurozone constructors was scaled back further in December. The result indicated the tenth consecutive fall in housing activity, with the pace of decline quickening from the previous survey period. Meanwhile, commercial building activity was the worst performing sub-sector monitored for the second successive month. The fall in December extended the current sequence of decline to 10 months and was strong overall. Work undertaken on civil engineering projects continued to reduce in December. Despite the decline softening slightly from November, the fall in infrastructure activity was solid overall and was the seventeenth in as many months.
Overall sentiment among eurozone building companies remained negative in December, as indicated by the Future Activity Index staying below the neutral 50.0 threshold for the fifth consecutive month.
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