The S&P Global Eurozone Construction PMI slipped to 42.8 in June 2026 from 43.7 in May, indicating a sharp and accelerating downturn in the sector across the bloc. Activity contracted in all three of the largest eurozone economies, with France posting a steeper decline and Italy also seeing a stronger downturn, while Germany’s pullback eased slightly but remained pronounced. Residential construction was again the weakest area, followed by commercial building and then civil engineering.
Although the fall in new orders slowed to a four-month low, subdued demand prompted firms to cut employment for a fifth straight month and curb purchasing activity, extending the reduction in input buying to a 49-month sequence. At the same time, severe supply delays persisted, driven primarily by shipping bottlenecks in Germany. On the cost side, input price inflation cooled to its lowest level since March, but overall business confidence deteriorated further into negative territory, with marked pessimism in Germany overshadowing modest optimism in Italy.
