According to the report from HCOB, activity in the construction sector continued to contract in March, while the pace of contraction accelerated compared to the previous months.
The eurozone construction PMI fell to 42.4 points from 42.9 points in February. The index remains below 50 points, which indicates a reduction in activity in the sector, for the 23rd month in a row. The decline in activity across the eurozone was driven by marked contractions in France and Germany, both of which recorded quicker declines on the month.
The HCOB said that all three broad areas of the construction sector recorded a reduction in activity, with the housing sector being the worst performing sub-sector for the 19th consecutive month and recorded the steepest reduction for seven months. Commercial and civil engineering firms also saw a decrease in activity, extending the current sequences to two years. New orders in the construction sector fell again in March, while the rate of decline was marked overall and stronger than the series average. The labor force also declined last month, accelerating slightly compared to February. Meanwhile input costs increased at a softer pace during March. Inflation of operating expenses eased to a modest pace that was the softest since last October. The data also showed that input buying fell for the twenty-second consecutive month in March. Eurozone construction companies remained downbeat in their expectations for output over the coming year in March. The degree of pessimism has also worsened since February.