UK Construction Improves, While Eurozone Constructions Remains in Recession

The UK economy has been weakening in the last three months after it rebounded in summer, following the flash crash in spring during lock-downs. Although, it is holding up much better than in Europe, as most sectors remain in expansion while in Europe services and construction have fallen in deep recession again.Today's construction reports from UK and Germany show the difference, with the activity expanding in November in Britain, while in Germany this sector remains deep in contraction. If it wasn't for the Brexit process, [[EUR/GBP]] should be on a strong bearish trend, but forex trading is not that straightforward nowadays, with everything that has been going on this year.     UK November Construction Report  November construction PMI 54.7 vs 52.0 expected October construction was PMI 53.1 points UK construction activity surprised to the upside last month, as new order growth sees its fastest rise since October 2014. Home-building remains the best performing sub-sector while civil engineering work also returned to growth in November.The rebound after the drop in October is at least a minor positive signal for the UK economy. Markit notes that:"UK construction output stayed on a recovery path in November and there were signs that the main growth driver has transitioned from catch-up work to new projects. The latest increase in new orders was the strongest since late-2014, with construction firms reporting a boost from rising client confidence and the release of budgets that had been held back earlier in the pandemic."House building was once again the stand out performer, while a return to growth for civil engineering contributed to the rise in the headline PMI during November. Commercial construction lagged behind the recovery seen elsewhere in the sector amid subdued demand for office space, retail developments and other corporate projects hit by the pandemic."Supply chain challenges remain on the horizon, as signalled by another sharp lengthening of lead times for construction products and materials. Transport delays and low stocks among suppliers were reported by construction firms in November, which led to the fastest increase in purchasing costs for over one-and-a-half years." German November Construction Report  November construction PMI 45.6 points vs 45.2 prior October construction PMI  was 45.2 points  The downturn in construction activity continues but at a slower pace at least, but the bright side is that constructors are the least pessimistic on the industry outlook since the start of the pandemic.