FX.co ★ Eurozone Construction Slumps to 5-Month Low

The S&P Global Eurozone Construction PMI fell to 44.6 in March 2026 from 46.0 in February, signaling the sharpest contraction in activity since October 2025 and extending the sector’s nearly four-year downturn. France recorded the steepest decline, its worst in 18 months, followed by Italy and Germany. Across segments, commercial construction saw the most pronounced drop, closely followed by residential building, while civil engineering also contracted, albeit at a slightly slower pace. New orders declined at the fastest rate in five months, and employment cuts accelerated to a four-month high. At the same time, input cost inflation jumped to its highest level since November 2022, driven by material shortages, shipping disruptions, and surging raw material and energy prices, pressures further heightened by ongoing conflicts in the Middle East. Reflecting these challenges, business confidence sank to its lowest level of 2026, underscoring deepening pessimism across the sector.