Declines in activity across 3 largest eurozone economies (Il Sole 24 Ore Radiocor) - London , 07 May - In April, the eurozone's purchasing managers' index for the construction sector fell to 41.9 from 42.4 in March, with a sharp and accelerated reduction in total construction activity across the euro area, according to data released by S&P Global and Hamburg Commercial Bank.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

The overall reduction in activity reflected declines across the three largest eurozone economies in April. Activity in Italy decreased modestly, falling for the first time in seven months and joining Germany and France in contraction mode.

"In April, the Eurozone's construction sector appears to be even further from recovery compared to the previous month," commented Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "Civil engineering activity is in a bad state, commercial activity is worse and housing activity looks bleak. While the performance of housing and civil engineering is similarly as bad than in previous months, the crisis in commercial building activity, including offices, has deepened. With the marginal softening of the fall in new orders, any expectation of a near-term recovery seems unfounded.

"The development in the Eurozone's construction sector, which has been rather varied in recent months, is now converging among Germany, France and Italy. However, this convergence is not cause for celebration, as Italy has simply joined the club of countries with a shrinking construction sector. Until recently, Italy had shown surprising resilience linked to the so-called superbonus program and recovery and resilience plan. Both seem to have lost force over the last months, in part because they are running out.".

AAA-Hob

(RADIOCOR) 07-05-24 09:58:21 (0268) 5 NNNN