The decline in total activity eases for another month but it is still at relatively depressed levels. Employment conditions continued to fall as firms remain more pessimistic about the outlook for the sector, even more so than in June. HCOB notes that:

“The most positive thing that can be said about these figures is that the slump in construction has slowed down a bit
recently. This is especially true for commercial building activity and civil engineering projects, while residential construction
took even a slightly bigger hit in July than in June. We expect a positive impetus in civil engineering from the general
renovation of 40 railroad lines, which is scheduled to be completed by 2030 and began in mid-July.

“Overall, the construction sector is still having a rough time. Construction companies lost even more orders in July than in
June, and expectations were the most pessimistic for four months. Around 41% of folks in the biz think they’ll be building
less next year, while only 9% are optimistic about expanding. Considering that building permits for residential projects in May
were down almost 25% from last year, this gloomy outlook isn’t too surprising.

“On the bright side, material prices eased up for the fourth month in a row. However, subcontractors have hiked their prices
again. In addition, the quality index for subcontractors is up and above the historical average. This might mean the
subcontractor market is starting to consolidate.”