Eurozone construction PMI falls to 43.6 in November

S&P Global's Eurozone construction purchasing managers index fell to 43.6 in November, down from 44.9 in October for a seventh consecutive monthly contraction across the sector.

November's decline was the sharpest since May 2020, with France leading the downturn at 40.7, followed by Germany at 41.5 - which had recorded the worst downward trend in September and October.

On the other hand, Italian construction companies registered their first increase in activity levels in five months, increasing to 52.0.

On a sector-by-sector level, the decline in Eurozone construction activity was led by housing, followed closely by civil engineering. Commercial activity also continued to reduce, albeit at the softest level in the last seven months.

S&P economist Laura Denman said: "The eurozone’s construction sector fell deeper into contraction territory midway through the final quarter of 2022. There were marked reductions in activity levels and new orders in November, with rates of decline in both cases the strongest in two-and-a-half years.

"Overall business sentiment among eurozone constructors remained deeply pessimistic in the penultimate month of the year amid concerns surrounding demand weakness and the ongoing cost of living crisis. Input prices also continued to rise at a historically sharp pace in November."

Reporting by Iain Gilbert at Sharecast.com