HCOB Construction PMI

The Eurozone Construction PMI is a monthly Purchasing Managers' Index survey compiled by S&P Global. It is published under sponsorship from Hamburg Commercial Bank (HCOB) as the HCOB Eurozone Construction PMI. It covers about 650 firms in Germany, France, Italy and Ireland, stratified by sector and workforce size on GDP, since January 2000. National indices are combined by construction value added into a euro area aggregate, not an EU27 total, tracking only monthly direction, not output levels.

Responses are usually collected in the second half of each month about change since the previous month. Results are released early in the following month, around the 4th to 6th at 09:30 Frankfurt time. Each release shows national activity for Germany, France and Italy, sector splits, demand, jobs, outlook, purchases, supply and subcontractors, with tables, charts and commentary. Underlying data are never revised, but seasonal factors may revise series; above 50 is growth, 50 is flat and below 50 is fall.

Six groups drive the index, covering activity, demand, work, outlook, purchases and subcontractors.

• Total Activity: change in total building volume versus the prior month, the headline index.
• Housing, Commercial and Civil Engineering Activity: housing, commercial buildings and infrastructure such as roads and utilities.
• New Orders and Employment: new business volumes and staffing levels versus the prior month.
• Future Activity: expected activity over the next 12 months, not a monthly change.
• Quantity of Purchases, Suppliers' Delivery Times and Input Prices: buying, delivery speed and costs, with above 50 faster and below 50 slower for deliveries.
• Subcontractor Usage, Availability, Quality and Rates: use, availability, quality and rates, with above 50 growth, improvement or inflation.

In the 6 May 2021 release for April 2021, Total Activity was 50.1, flat on March for a second month. Input prices hit 84.9 and subcontractor rates 62.5, both records since January 2000, while delivery times fell to 23.6, weakest since April 2020. New orders were 50.0, with Germany at 46.2, France at 49.8 and Italy at 57.6, while housing was 52.1, commercial 47.3 and civil 48.1. A reading near 50 can hide sharp splits, so the parts tell more than the flat headline.

1. Replies: Questionnaires go to purchasing managers in about 650 firms in the second half of each month, reporting rise, flat or fall.
2. Diffusion index: For each country, the index equals the share reporting higher plus half the unchanged share on a 0 to 100 scale. For example, 30% higher and 50% unchanged, or 30 plus 25, gives 55.0.
3. Seasonal adjustment: Figures are smoothed to remove normal seasonal swings before comparison.
4. Eurozone weighting: National indices are combined using each country's construction value added, not equal weights. For example, 54.6, 49.0, 57.0 and 52.0 with weights 4, 3, 2 and 1 give 53.1.
5. Headline: The Total Activity Index tracks total building volume versus the prior month and may be called the Construction PMI.