Eurozone construction activity remained deeply in contraction in November, driven by a significant drop in new orders, according to the latest HCOB PMI data.
The Eurozone Construction PMI Total Activity Index stood at 42.7, down from 43.0 in October, signalling a sharp decline in output as 2024 drew to a close.
Germany experienced its steepest fall since April, while France saw the strongest decline in a year, and Italy’s downturn was the least severe since May.
The housing sector was the weakest, posting its softest decline in 14 months. Civil engineering showed a more moderate fall, while commercial building recorded the sharpest contraction for three months. Job cuts continued, though the pace remained moderate. While employment fell in Germany and France, Italy saw a slight increase in staffing for the third consecutive month.
Input costs rose at their fastest pace in nine months, with France leading and Germany seeing only a small increase. Purchasing activity continued to decline sharply, especially in Germany and France, though Italy experienced only a slight drop.
Supplier performance deteriorated, with lead times lengthening in France and Italy, despite some improvements in Germany.
Construction firms’ expectations for the coming year turned increasingly negative, reaching their lowest since April 2020.
Attribution: S&P Global
Subediting: M. S. Salama