Eurozone construction firms reported a sustained downturn in activity during February.
Meanwhile, incoming business fell at the fastest pace since November as appetite for new construction projects remained subdued. With activity and sales falling further, firms across the bloc reduced employment levels once again, extending the current period of job shedding to 12 months. The pace of decline was only marginal and the softest in the current sequence.
Moreover, eurozone constructors were increasingly optimistic about the year-ahead outlook for activity, as confidence rose to its highest level since February 2020. Positive sentiment was underpinned by hopes that the pandemic would recede further and induce a wider recovery in both private and public sector construction.
By country, France and Germany continued to report further declines in construction activity, with the latter signalling the steepest fall since May 2020. Meanwhile, Italian firms registered the strongest rate of activity growth since October 2018.