FX.co ★ 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 posted its sharpest contraction since August 2024. Despite the improvement, the index remained well below the neutral 50 mark, signaling that the construction downturn has now persisted for more than four years. Among the largest economies, France recorded the steepest decline, Germany continued to see a pronounced fall, and Italy experienced the mildest deterioration. By segment, residential construction contracted at the fastest pace, while civil engineering registered the slowest decline. New business also fell sharply across the sector, although the rate of contraction eased compared with April, as demand conditions remained weak. On the cost side, input price inflation stayed elevated in May, with all three monitored economies reporting strong increases, led by Germany. Finally, construction firms remained pessimistic about activity over the coming year, extending the current spell of negative sentiment to a third straight month.