January data from IHS Markit pointed to the softest increase in eurozone construction activity since July 2018. The slowdown was partly driven by activity declines in two of the three monitored subsectors and only a moderate rise in new business. Weaker demand for building work also saw the rate of job creation ease to a near-two-year low and purchasing activity rise at its slowest pace since last October. Despite this, construction firms were the most optimistic towards the business outlook for six months.

Falling from 53.1 in December to 50.6 in January, the IHS Markit Eurozone Construction PMI signalled the slowest rise in construction activity for six months. The rate of growth eased in both Germany and Italy, while French constructors reported the first contraction for five months.

Eliot Kerr, Economist at IHS Markit, which compiles the survey, said: “The eurozone construction sector got off to a sluggish start in 2019, posting its softest activity expansion for six months during January. This was mainly driven by a marginal contraction in France, but there was also slower growth in Germany and Italy”.