According to the report from IHS Markit, the eurozone construction PMI declined slightly in January, but remained above the 50-point mark, indicating an expansion in activity.
The eurozone construction PMI fell to 56.3 points compared to 56.6 points in January. The growth of activity in the commercial and civil construction sector accelerated in February, and reached the highest level since January 2018, while activity in the housing construction sector weakened slightly compared to January, but remained high. As for the eurozone countries, the growth of activity in the construction sector reached a record high in Italy, and showed a second monthly increase in a row in Germany, while activity in France declined sharply (to 50 points from 52 points in January).
The data also showed that the index of new orders decreased slightly compared to January, but showed an expansion for the 7th month in a row. Respondents stated that the growth in demand increased orders as the situation around the pandemic improved. Meanwhile, the employment index reached its highest level since February 2018, and the purchasing activity index among construction companies rose to the highest level since February 2007. Construction companies expressed firm optimism about the prospects for activity for the year ahead, although confidence declined compared to January.