FX.co ★ Eurozone Construction Contraction Eases in July

The S&P Global Eurozone Construction PMI rose to 44.3 in July 2026 from 42.8 in June, signaling another sharp downturn in activity, though the mildest since March. Construction output remained firmly in contraction across the bloc at the start of the third quarter, with declines recorded in all monitored sectors and in the three largest member economies, led by a deeper slump in Germany. The weakness was largely driven by subdued demand, as new orders fell at an accelerated rate. Employment continued to be cut for a sixth consecutive month, although the pace of job shedding eased to its slowest since February, with Germany again seeing the steepest reductions. At the same time, cost pressures weakened further, as the energy-driven inflation spike that followed the Middle East conflict continued to retreat from April’s record peak. Looking ahead, firms in all three major economies remained pessimistic, pushing overall business confidence to a three-month low, with sentiment in Germany the most negative.