Euro area construction output dips in August

Alexander Bueso WebFG News | 18 Oct, 2017 11:55 - Updated: 11:55 | | |

1euro

Euro area construction output shrank slightly in August amid softer activity in both building and civil engineering.

Total output declined by 0.2% month-on-month, according to Eurostat, with that in building off by that same amount and in civil engineering by 0.1%.

Amongst the single currency bloc's largest economies, activity was weakest in Germany, where it fell by 1.2% versus July, while in Italy it jumped by 1.8%.

French construction sector output meanwhile was up by a tenth of a percentage point, although Spain and the Netherlands saw falls of 0.5% and 0.4%, respectively.

Versus a year ago, total output was higher by 1.6%.

"The September data should be better, but it likely won’t prevent a downbeat outlook for Q3 as a whole. We think output rose 3.5% year-over-year in September, but this would only be enough to deliver a 0.2% quarter-on-quarter gain in Q3, sharply lower than the 2.0% in Q2. We can’t be completely sure, however, that this sequence fits with the investment data," said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.

"Overall, construction capex could still have been a boost to the economy in Q3 once we get the fully revised data."

More news

23 Nov Sector movers: Centrica, China sink utilities and banks

Defensive areas of the market performed best on Thursday, aside from utilities that is, as shares of Centrica crumbled.

23 Nov Morgan Stanley reaffirms 'buy' on ITV

Analysts at Morgan Stanley stuck by their 'buy' recommendation on shares of ITV and 230p target price, pointing to nine different factors to back up their investment thesis.

23 Nov Europe close: Stocks finish near highs, China woes and euro gains weigh on German shares

Stocks finished near their best levels of the day, having mounted a comeback following early weakness that was attributed to an overnight drop in Chinese equities on the heels of continued upwards pressure on bond yields in the Asian giant.

23 Nov Europe midday: German political progress and strong PMIs offset drop in Chinese stocks

Stocks are mounting a comeback following early weakness that some market commentary is attributing to an overnight drop in Chinese equities on the heels of continued upwards pressure on bond yields in the Asian giant.

23 Nov South African Reserve Bank pauses interest rates ahead of debt rating decision

South Africa's central bank opted to leave interest rates on hold on Thursday, but the country is still facing several hurdles on Friday when several key ratings agencies are set to choose whether to downgrade the country's debt.

23 Nov Canadian retail sales held back by declines in vehicles and clothing

Recently collated data from Statistics Canada revealed a significantly lower than expected rise in Canadian retail sales in September, as gains from higher gasoline prices were offset by declines in sales of vehicles and clothing.

23 Nov Greencoat Renewables announces maiden dividend of 2.61 euro cents

Between 15 February and 30 September, renewable infrastructure company Greencoat Renewables's portfolio, made up of wind farms that listed on the Irish and London Stock Exchanges in July of 2017, generated 107.7GWh of electricity, which was 3% above budget for the period.

23 Nov Belgian business confidence rises above forecasts in November

Business confidence in Belgium rose more than expected in November, led by a sharp improvement in sentiment in busines-related services and construction.

23 Nov Commodities: weaker dollar helps gold stay put

The greenback weakened against a basket of currencies on Thursday with the dollar index dropping 0.11% to 93.117 by 1715 GMT, it's lowest level in more than a month.

23 Nov Bonds: Gilts underperform amid Brexit talks optimism, Budget

These were the yields on some of the most widely-followed 10-year sovereign bond yields: US: 2.32% (-4bp)UK: 1.28% (+1bp)Germany: 0.35% (+0bp)France: 0.67% (-1bp)Spain: 1.45% (-3bp) Italy: 1.77% (-1bp)Portugal: 1.91% (-1bp)Greece: 5.37% (+3bp)Japan: 0.03% (-0bp)