The downturn in eurozone construction activity continued to ease in July, adding to further signs that the sector may turn a corner in the coming months if the economy continues to recover from the COVID-19 pandemic.
Business expectations about the year-ahead outlook also turned positive on balance for the first time since February. Disappointingly, the survey showed only Italy register further growth in construction activity, while France reported a return to decline. Germany remained in a construction downturn, albeit with a noticeably slower rate of decline.
The prospects of a robust recovery are therefore reliant on a revival of demand which, at the moment, remained woefully subdued. Construction demand weakened further in July, albeit at the slowest pace in the current five-month sequence.
Firms consequently reduced their purchasing activity and hiring, partially also in response to rising costs.
- Order books fall at softer rate
- Rate of job shedding eases
- Positive sentiment on balance for first time in five months