EZ construction PMI falls again in March on weak housing market

Eurozone construction activity contracted for the eleventh consecutive month on the back of a weaker housing market, according to a widely read survey published on Thursday.

S&P Global's index fell to 45.0 in March from 47.6 in February, The decline was the strongest seen in 2023 to date and "sharp overall".

The sharpest contractions were seen in Germany, France and Italy. At sector level, the decline in construction activity in the eurozone was led by housing, followed by civil engineering and commercial activity.

S&P economist Usamah Bhatti said: "There were steep and strengthened reductions in both activity and new order volumes during March that were the fastest seen in the year-to-date. On a more positive note, firms commented on the softening impact higher prices, as cost burdens rose at the slowest pace since December 2020."

"This in part was the result of easing pressure on construction supply chains, as the average time taken for inputs to be delivered lengthened to the smallest degree since October 2019, with German firms recording a shortening of delivery times for the first time since September 2014.

"Overall, business sentiment among eurozone constructors remained deeply pessimistic in the latest survey period amid concerns surrounding demand weakness the ongoing cost of living crisis "

Reporting by Frank Prenesti for Sharecast.com