Eurozone construction sector weakens as costs mount - PMI.

Source: Sharecast

The S&P Global Eurozone construction PMI total activity index fell to 42.5 from 43.4 in September, one of the sharpest declines seen since the pandemic.

Output fell at the steepest rate since April, driven by commercial and civil engineering, while new orders declined at the strongest pace in six months. Cost pressures, meanwhile, reached a five-month high.

Among individual countries, the total PMI activity index in Germany - the bloc’s biggest economy - slumped to 41.6 from 43.5, while in France it shed one point to 38.8. Italy picked up slightly, but at 47.3 remained in negative territory.

A reading below the neutral 50.0 benchmark indicates contraction while one above it suggests growth.

Usamah Bhatti, economist at S&P Global Market Intelligence, said: "The health of the Eurozone construction sector remained weak in October, with all three monitored segments remaining firmly in contraction territory.

"The rate of inflation was the highest in five months, and coincided with the steepest lengthening of lead times since July. These developments will be key gauges to watch for signs that the Eurozone construction sector can start to move into more positive territory."

The data are based on surveys sent to panels of construction companies in Germany, France, Italy and Ireland, with responses collated between 12 and 30 October.