Eurozone Construction Sector Plunges Amid Inflation and War Concerns

Construction orders in the Eurozone fell sharply in August due to inflation and war concerns. The S&P Global Eurozone Construction Purchasing Managers' Index (PMI) posted a score of 43.0, down from 44.3 in July and indicating a contraction for the 52nd consecutive month.

The decline was most pronounced in France, with residential construction seeing the sharpest decrease followed by commercial construction. Italian companies also experienced their fastest contraction in four years, while German companies saw their softest fall to date.

Usamah Bhatti, economist at S&P Global Market Intelligence, noted that 'the three sub-sectors of construction remained firmly in contraction territory, again led by housing.'

In related news, the UK experienced a 'sustained downturn' in August, with the S&P Global UK Construction PMI registering 44.3, down from 44.7 in July. Tim Moore, economics director at S&P Global Market Intelligence, attributed this to 'sluggish demand conditions and low client confidence, combined with anxiety about the impact of the Middle East conflict.'