Tuesday 16 April 2019 12:09 pm | Updated: Monday 03 June 2019 1:07 am

Eurozone construction sector bounces back in February after weak January

The Eurozone’s construction sector bounced back in February from a decline in January, new data from the EU’s statistics body has shown.

Total construction in the single currency area grew three per cent in February compared the previous month, after falling 0.8 per cent in January, according to first estimates from Eurostat.

The good news for the sector comes during a tough time for the Eurozone economy. Last month, its central bank slashed its growth forecasts for 2019 to 1.1 per cent, 0.7 percentage points lower than its December 2018 prediction.

In the 28 countries that make up the European Union, construction sector output grew by 2.3 per cent in February year-on-year, after growth slowed to 0.6 per cent in January.

Both the Eurozone and the EU’s construction growth rates for February were significantly above the rates seen over the previous five months.

Of the major economies, Germany led the charge, with its construction sector growing 6.8 per cent in February compared to January.

Growth in Britain’s construction sector slowed to 0.4 per cent in February compared the previous month, after growing 3.5 per cent in January.

Whereas the official Eurostat data concerns February, signs are that growth in the European construction slowed in March.

Earlier this month an IHS Markit Eurozone construction survey scored 52.2 in March, down from 52.6 in February. A number above 50 shows growth.

At the time, IHS Markit economist Eliot Kerr said: “Growth [in March] was underpinned by a further rise in new business which saw firms maintain a marked pace of hiring.”