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- Eurozone construction activity rose slightly in September
Eurozone construction activity rose slightly in September
September data from IHS Markit pointed to a renewed increase in activity across the eurozone construction sector. The expansion was supported by another rise in staff numbers, although new orders continued to fall. Meanwhile, purchasing activity grew at a slightly faster rate than in August and sentiment towards the business outlook improved. On the cost front, input prices continued to rise markedly, but the rate of inflation remained in line with August's 34 month low.
Up from 49.1 in August, at 50.5 in September, the Eurozone Construction PMI signalled a slight rebound in building activity. The result was driven by further growth in France, and stable trends in Germany and Italy. Of the three monitored sub-sectors, commercial was the strongest-performing category, posting a marginal rise. On the other hand, there were further contractions recorded at both home builders and civil engineers. Notably, the reduction in work undertaken on infrastructure projects was the quickest for four months.
Building companies in the eurozone were optimistic towards the 12 month business outlook in September. Moreover, the degree of positivity was stronger than in the previous survey period and historically elevated. Within the so-called 'big-three', confidence was highest among Italian firms.
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