Eurozone Construction Sector Sees Slowest Contraction Rate

The Eurozone's construction industry continued to struggle in July, according to the latest S&P Global Eurozone Construction Purchasing Managers' Index (PMI). The index rose from 42.8 to 44.3, but still indicates a contraction in activity.

All three of the largest Eurozone economies - France, Germany, and Italy - recorded declines in activity during the month. Commercial construction saw the biggest decline, followed closely by residential projects.

The sector has been experiencing rising input prices due to inflation, but at a slower rate than in April. The slowdown in cost pressures did little to ease pessimism among construction companies about their year-ahead outlook.