EZ construction showing 'sustained contraction' - survey

The eurozone’s construction sector is suffering a “sustained contraction”, according to the latest PMI survey by S&P Global.

December readout showed the total activity index fell to 42.6, down from 43.6 in November and the eighth consecutive fall. Figures below 50 represent a decline.

Activity fell in the bloc’s three biggest economies of Germany, France and Italy as the war in Ukraine and soaring energy costs impacted the sector.

Laura Denman, an economist at S&P Global Market Intelligence, said the sector had ended 2022 on a “negative note” with a “sharp fall” in building activity.

“December data suggested that firms were anticipating challenging economic conditions to continue into the future,” said S&P Global economist Laura Denman.

However, that there was a “sustained easing” in both cost and supply pressures, she added.

Reporting by Frank Prenesti for Sharecast.com