According to the report from IHS Markit, in December, the index of activity in the construction sector fell to 52.9 points from 53.3 points. However, the index remained above 50 points, which indicates an expansion of activity. In general, the expansion of activity has been recorded for the third month in a row amid the growth of new orders and the resumption of projects suspended due to COVID-19.
The data also showed that activity in the housing construction sector and in the commercial construction sector continued to expand steadily, but activity in the civil construction sector decreased slightly.
In general, the improvement of the situation in Italy contributed to the growth of activity in the construction sector of the eurozone. Meanwhile, the growth rate of activity in France slowed down, while construction activity in Germany declined.
The data also showed that the growth rate of new orders accelerated to the highest level since February 2019 on the back of sustained government incentives for the sector. In addition, there was a slight increase in employment in December. Construction companies also expressed optimism about the 12-month outlook, but the level of positive sentiment fell to an eight-month low.
IHS Markit also reported that there was a further increase in production costs in December. Most companies pointed to higher raw material prices due to widespread shortages among suppliers.