Source: Sharecast
The HCOB Eurozone construction PMI total activity index remained in negative territory last month, at 46.0.
A reading below the neutral 50.0 suggests contraction, while one above it indicates growth.
However, it was an improvement on March’s 44.8, and the softest fall in construction activity since February 2023. New orders, while lower, also fell at the slowest rate in three years.
Among individual member states, Germany’s construction PMI rose to a 26-month high of 45.1, up from 40.3 in March.
However, in France, it eased marginally, to 43.6 from 43.8, while in Italy, the PMI fell to 50.1 from 52.4.
Overall price pressures rose to a 15-month high, and respondents remained pessimistic about the long-term health of the sector. All three categories – housing, commercial and civil engineering – reported contractions, although the pace of decline was softer.
Normal Liebke, economist at Hamburg Commercial Bank, acknowledged that the construction sector “improved slightly” in April, adding: “HCOB Economics expect further interest rate cuts by the European Central Bank in the coming months, which would benefit the construction industry.”
But he also warned: “The outlook remains bleak. Orders are falling rapidly and are well below the historical average. Business expectations have declined further, with no signs of improvement in the near future, particularly given the increased geopolitical uncertainties.”
The Eurozone construction PMI is compiled by S&P Global from responses sent to a panel of around 650 construction firms.
The survey data were collected between 9 and 30 April.