Gavekal Capital: Sharp Decline in European Construction Output

Wednesday, August 20, 2014

Sharp Decline in European Construction Output

According to data released earlier today, he mini-boom in European construction that began earlier this year came to an abrupt halt in June, as output declined by more than 2% year-over-year (from a multi-year high of more than 7%yoy in April):

Growth in building construction and civil engineering projects both turned negative:

On a country basis, the unusual spike in Spanish construction output appears to be normalizing while growth in Portugal never managed to pick-up at all:

On a company basis, the tentative improvements in many MSCI Europe Construction & Engineering members appear to be weakening once more:

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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