New orders slide in Eurozone construction sector - PMI

(Sharecast News) - The Eurozone's construction sector slowed in November, a closely-watched survey showed on Thursday, heaping more pressure on the bloc's faltering economy. The latest HCOB Eurozone construction PMI total activity index was 42.7, down on October's 43.0.

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

There was also a "robust" contraction in new orders, HCOB noted, which fell at the strongest rate since September 2023, while business confidence dropped to the lowest level since April 2020, at the start of the pandemic.

The housing sector was the worst-performing sector, although civil engineering and commercial building were also softer.

Among member states, Germany - the bloc's biggest economy - reported the strongest fall in activity since April.

Tariq Kamal Chaudhry, economic at Hamburg Commercial Bank, said: "Germany is dragging down the Eurozone's construction sector.

"The German construction industry is struggling due to high interest rates and increased costs, which have significantly reduced demand for new buildings. Material shortages and a lack of skill labour continue to burden the sector.

"The year 2024 seems to be written off, and 2025 offers little hope.

"With political crisis in the two largest economies of the Eurozone - Germany and France - the situation remains tense. The goal for next year should be to have effective governance in European states to find a way out of the current crisis."

Data published on Wednesday by HCOB showed the Eurozone had slipped back into contraction in November, after the once stronger services sector faltered.