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- Eurozone construction activity continues to expand
Eurozone construction activity continues to expand
According to the report from IHS Markit, the Eurozone Construction Total Activity Index rose slightly from 50.1 in April to 50.3 in May, signalling a third consecutive expansion in activity. Though fractional overall, the rate of growth was the quickest recorded since February 2020. Companies often linked the latest rise in activity to the start of new projects as demand growth resumed amid sustained government incentives for the eurozone construction sector. Underlying data indicated that the upturn was centred on house building. There was a softer fall in commercial construction and a quicker decline in infrastructure projects.
May survey data pointed to a further expansion in home building activity across the eurozone, stretching the current period of growth to three months. The rate of increase quickened from April and was the fastest recorded since February 2020. Commercial building activity fell for the fifteenth consecutive month in May, although the rate of decline was the softest since this sequence began. Work undertaken on civil engineering projects decreased again in May. The fall stretched the current period of decline to 22 months. Notably, the pace of contraction was the quickest since February.
Eurozone construction firms expressed optimism toward the 12 month outlook for the fifth consecutive month in May. The level of positive sentiment strengthened from April and was sharp overall.
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