Eurozone construction PMI shows slower decline; cost pressures ease

The HCOB Eurozone Construction PMI increased to 43.0 in October 2024, up from 42.1 in September, indicating a severe but slowing decline in output.

Eurozone construction PMI shows slower decline; cost pressures ease

The eurozone construction sector continued to shrink at the start of Q4, though at the slowest pace since December 2023. Falling new orders across various sectors drove the downturn, while business confidence dropped to its lowest point in 2024. Employment and input buying were reduced, with Germany experiencing the steepest decline, followed by France and Italy, where decreases were milder. The residential sector saw the sharpest contraction, while civil engineering was the least affected. New orders continued to decline, except in Italy, where the drop was minimal.

Eurozone construction faces eased cost pressures, job cuts persist

Cost pressures eased as input price inflation slowed to its lowest rate since July 2023. Job cuts persisted for the 20th consecutive month, especially in Germany and France, though Italy saw job growth. Input purchasing continued to decline, while supplier performance showed slight improvement, with setbacks in France and Italy.