Homebuilding has declined over much of this year, though more recently demand appears to have largely stabilized in response to the decline in mortgage rates that has occurred since the spring.
Following a strong but partial and uneven rebound in real GDP growth in the third quarter, latest surveys and high-frequency indicators signal that euro area economic activity lost momentum going into the fourth quarter. The resurgence in COVID-19 infections is weighing on services sector activity in particular, which is especially vulnerable to the voluntary and mandatory social distancing measures introduced.