Eurozone Construction Downturn Eases in May

2026-06-04 07:45 By Czyrill Jean Coloma 1 min. read

The S&P Global Eurozone Construction PMI rose to 43.7 in May 2026 from 41.7 in April, when the sector recorded its sharpest contraction since August 2024.

Still, it remained firmly below the 50 threshold, extending the construction downturn to more than four years.

France registered the steepest contraction, while Germany continued to post a marked decline and Italy recorded the mildest deterioration.

By sector, housing recorded the fastest decline, while civil engineering saw the slowest contraction.

New business continued to fall sharply across the sector, although the pace of decline eased from April as demand conditions remained subdued.

On the price front, input cost inflation remained substantial in May, with all three monitored economies reporting robust increases in costs, led by Germany.

Finally, construction firms maintained a pessimistic outlook for activity over the coming year, extending the current run of negative sentiment to a third consecutive month.



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Eurozone Construction Downturn Eases in May
The S&P Global Eurozone Construction PMI rose to 43.7 in May 2026 from 41.7 in April, when the sector recorded its sharpest contraction since August 2024. Still, it remained firmly below the 50 threshold, extending the construction downturn to more than four years. France registered the steepest contraction, while Germany continued to post a marked decline and Italy recorded the mildest deterioration. By sector, housing recorded the fastest decline, while civil engineering saw the slowest contraction. New business continued to fall sharply across the sector, although the pace of decline eased from April as demand conditions remained subdued. On the price front, input cost inflation remained substantial in May, with all three monitored economies reporting robust increases in costs, led by Germany. Finally, construction firms maintained a pessimistic outlook for activity over the coming year, extending the current run of negative sentiment to a third consecutive month.
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Eurozone Construction Downturn Steepest Since 2024
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The S&P Global Eurozone Construction PMI fell to 44.6 in March 2026, down from 46.0 in February, marking the sharpest contraction in activity since October 2025 and extending the sector’s decline for nearly four years. France led the downturn with its steepest drop in 18 months, followed by Italy and Germany. By sector, commercial construction suffered the most severe decline, closely trailed by residential building, while civil engineering also contracted, though at a slightly slower pace. New orders plunged at the fastest rate in five months, and job cuts accelerated to a four-month high. Adding to the pressure, input cost inflation surged to its highest level since November 2022, driven by material shortages, shipping delays, and soaring raw material and energy prices, exacerbated by ongoing Middle East conflicts. Meanwhile, business confidence hit its lowest point of 2026, reflecting deepening pessimism across the sector.
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