Eurozone construction PMI remains in contraction territory in May

(Sharecast News) - Eurozone construction activity remained in contraction territory in May, according to Hamburg Commercial Bank's purchasing managers' index. HCOB's Eurozone construction PMI fell to 45.6 in May, down from 46 in April, pointing to a deeper contraction in construction activity across the euro area.

Total activity and new order inflows both declined at sharp rates, leading to further reductions in employment and purchasing activity.

On a sector-by-sector basis, housing activity remained the worst-performing segment in May, while sharp falls were also seen in commercial and civil engineering activity.

Regionally, France and Germany posted steeper contractions and weighed on the overall Eurozone, while Italy was the lone bright spot, posting a third consecutive monthly growth.

However, despite the challenging conditions, Eurozone construction firms expressed optimism regarding the outlook for activity over the next 12 months, marking the first positive sentiment since February 2022.





Reporting by Iain Gilbert at Sharecast.com