FX.co ★ Eurozone Construction PMI Falls to 8-Month Low

The HCOB Construction PMI fell to 44 in October 2025, marking its steepest decline in eight months and remaining well below the 50 threshold indicating growth, down from 46 in September. This sharp contraction in output was primarily due to a significant drop in new orders, with pronounced downturns in the housing and civil engineering sectors, coupled with weakened commercial activity. Among the major economies, Germany and France continued to experience contractions, with France experiencing the sharpest decline, while Italy showed only a slight growth after four consecutive months of declines. Companies responded by reducing their workforce and purchasing activities, extending a longstanding trend of retrenchment, and there was a notable drop in the use of subcontractors. Input cost inflation eased to a seven-month low; however, cost pressures increased in France. Supply chain conditions slightly worsened, with longer lead times reported in Germany, France, and Italy. Businesses maintained a pessimistic outlook for the year ahead due to weak demand, though Italian companies exhibited the highest optimism in nearly 18 months, in stark contrast to the deteriorating sentiment in France and persistent caution in Germany.