Euro area construction output falls sequentially in August

Following a solid beginning to this year, the construction sector of euro area seems to have taken a breather in the summer. With building work and civil engineering activity softer, the overall construction output dropped 0.2 percent on a sequential basis in August after moving broadly sideways in the previous three months.

Amongst the five largest member states, only Italy recorded substantive growth of 1.8 percent sequentially in the sector in August, whereas German output was notably down by 1.2 percent sequentially.

However, given the growth in earlier months, euro area construction output was still 1.7 percent higher than a year earlier, with German output rising 4 percent year-on-year.

“Upbeat sentiment in the sector, elevated levels of new orders, and solid economic fundamentals all point to a renewed expansion in construction from the autumn on”, stated Daiwa Capital Markets Research.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bullish at 74.5503, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 38.1863. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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