Construction activity in Europe expands at faster pace

The eurozone has experienced its fastest expansion in construction activity expansion for a year, supported by increases in worker numbers and purchasing.

“The eurozone construction sector delivered mixed results in February as faster activity growth was accompanied by signs of a slowdown in demand,” said Eliot Kerr, economist at IHS Markit, which compiles the survey. “Despite activity rising at the quickest rate for a year, new business growth decelerated to the slowest in the current five-month sequence of expansion. Such a reading indicates softening underlying demand and can act as a prelude to slower activity growth. That said, firms were confident enough to continue taking on additional staff and buying extra materials, and forecasts for future activity remained strong.”

The rate of job creation accelerated to the quickest for almost a year. Across the euro area’s three largest economies, employment growth was quickest in Germany.

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