Eurozone construction PMI moved into expansion territory in March
08.04.2021, 08:01

Eurozone construction PMI moved into expansion territory in March

According to the report from the IHS Markit, the Eurozone Construction Total Activity Index rose from 45.0 in February to 50.1 in March, signifying a fractional expansion in eurozone construction activity. This marked the first rise in activity since February 2020, prior to the downturn caused by the coronavirus disease 2019 (COVID-19) pandemic during 2020. Latest data showed that the return to growth was led by house building activity, which rose for the first time in 13 months. There were also softer declines in both commercial construction and civil engineering activity.

Home building among eurozone constructors returned to expansion territory in March. The pace of growth was modest overall and was the first instance of growth since February 2020. Meanwhile, commercial construction activity was the worst performing sub sector in the latest survey period. The fall in March was the thirteenth in a row, yet the pace of contraction was the softest since July 2020.

Work undertaken on civil engineering projects reduced for the twentieth month in succession in March. That said, the decline softened from February and was the softest since February 2020

New orders received by eurozone construction firms returned to growth in for the first time in 13 months in March. Though the pace of the increase was marginal, it was the fastest since January 2020. 

Overall sentiment among eurozone building companies remained positive in March, as indicated by the Future Activity Index staying above the 50.0 no-change threshold for the third month running. All three of the largest economies in the bloc anticipated a rise in activity over the next 12 months, the first time this has occurred since February 2020.

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