Eurozone construction activity has fallen for the first time in nine months, a signal that Europe’s economy is weakening.
- The S&P Global’s Eurozone construction PMI, which gauges activity in the sector, has dropped into contraction territory as supply chain issues due to the Ukraine war led to higher prices and a shortage of materials.
- The index fell from 50.4 in April to 49.2 in May, signaling that the industry contracted last month, for the first time since last August.
- Usamah Bhatti, Economist at S&P Global Market Intelligence stated that construction firms in the bloc were increasingly pessimistic relating the outlook for activity with confidence dropping to its lowest level since October 2020.
Homebuilding, commercial work and civil engineering activity all decreased last month, with new orders falling too.
EuroStoxx 50 down -1.12%, EURUSD down -0.25%
Source: S&P Global.