Eurozone construction sector continues to struggle - PMI

(Sharecast News) - The downturn in the Eurozone's construction sector deepened in September, a closely-watched survey showed on Monday. The HCOB Eurozone construction PMI total activity index fell to 46.0 from 46.7 in August.

A reading above the neutral 50.0 indicates growth, while one below it suggests contraction.

Both total activity and new order inflows fell, leading to a further scaling back in both purchasing and employment, although the pace of job shedding slowed to the softest since March.

Respondents, who remained notably downbeat for the coming year, also pointed to a rise in costs in September.

Across the three sub-sectors, housing continued to be the worst performing, with the rate of reduction the most pronounced for three months.

Among individual countries, meanwhile, Germany and France - the bloc's two biggest economies - both reported a notable slide in output. Firms in France firms were also some of the most pessimistic.

Nils Muller, junior economist Hamburg Commercial Bank, said the data signalled a "solid and accelerating contraction" across the construction sector.

He continued: "Weak demand conditions continued to weigh on output, with housing and commercial segments particular hard hit. Civil engineering fared slightly better, though still recorded a modest decline.

"The sector continues to face headwinds from weak demand, rising costs and deteriorating supply conditions, suggesting little near-term relief for construction activity across the Eurozone."

The data were collected from a panel of around 650 firms between 11 and 30 September.