Markets

Italy, Ireland were construction hotspots in a sluggish Eurozone last month

The Colosseum, Rome. Italy’s construction market has grown nine months in a row (Diliff/CC BY-SA 2.5)
The release of pent-up demand for construction sent Italy and Ireland into strong growth mode last month against the backdrop of weak growth in the Eurozone as a whole, according to a series of Construction Purchasing Managers Indexes (PMIs) released this week by IHS Markit and Ulster Bank.

The index for Italy rose from 56.6 in September to 58.6 in October, the country’s ninth straight monthly expansion in construction output, with a near-record growth in housing construction followed by a strong commercial buildings market, IHS Markit said.

Scores above 50 signal an increase in activity on the month before, while readings below 50 signal a decrease.

In Ireland, commercial buildings drove growth, with its index hitting 56.9 in October, up from 56.3 in September, according to the Ulster Bank Construction PMI. Irish construction activity has now risen in each of the past six months.

By contrast, IHS Markit’s index for the Eurozone as a whole rose to just 51.2 in October, the first expansion of activity there since June.

France moved out of contraction mode last month for the first time since May, but not by much, with a total PMI score of just over 50.

Germany stayed in contraction mode, coming in at 47.7 in October, a slight improvement on September’s 47.1.

In Italy, survey respondents attributed growth to strong demand and government tax relief schemes. Irish respondents cited demand pent up since the Covid pandemic.

All markets are affected by supply chain disruptions creating delays and shortages, IHS Markit said.

It’s PMIs are available here.

Story for GCR? Get in touch via email: [email protected]

Leave a comment

Your email address will not be published. Required fields are marked *

Latest articles in Markets