FX.co ★ Eurozone Construction Downturn Eases in March

The HCOB Eurozone Construction Purchasing Managers' Index (PMI) experienced an uptick, increasing to 44.8 in March from 42.7 in February. While this indicates that the sector is still contracting, the rate of decline has slowed down. The downturn in output and new orders was driven by weak demand, yet the extent of this decline was the mildest observed in almost three years. Germany faced the most significant downturn expected for 2025, with France also experiencing contraction; however, Italy showed its strongest growth since December 2023. Employment saw a slight reduction, and input purchasing decreased at the slowest pace in 23 months. Meanwhile, input costs rose at a moderate rate, with Italy experiencing the highest inflation. Although business sentiments remain pessimistic, there was an improvement, marking the least negative outlook in three years.