CEO Comité Européen de l‘Outillage 
European Tool Committee 
Europäisches Werkzeugkomittee

Construction downturn slows further in July

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.

 

 

Key findings:

  • Order books fall at softer rate
  • Rate of job shedding eases
  • Positive sentiment on balance for first time in five months

 

Further information:

IHS Markit Eurozone Construction PMI July 2020

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Posted in General Market News

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