Eurozone Construction Firms Less Upbeat as New Orders Fall the Fastest in 14 Months

Source: S&P Global

Eurozone construction firm’s pessimism on the twelve-month outlook fell to the lowest since November 2020 in April, as depressed demand continued to impact on new orders. DAX is up +1.42%, EURUSD is down -0.11%.

• The weakened pessimism occurred as firms reported the fastest decline in new orders in fourteen months. The depressed activity saw the total activity index in constructing falling from 52.8 in March to 50.4 in April.
• Firms blamed the lack of new projects in the market to the decline in the activity index as heightened uncertainty prompted caution. 
• Contraction was noted in civil engineering and commercial work, while the recent upturn in house building eased to the slowest in fourteen months. 
• Cost pressures continued to escalate as input costs rose at the second-fastest pace on record.  Staffing levels also fell, and although marginal, the shedding of jobs was the fastest in fifteen months.
• A further indicator of deterioration of activity was underlined by a weak vendor performance. The average lead times increased in all of the eurozone’s largest economies.