FX.co ★ Eurozone Construction PMI Drops to 3-Month Low

In June 2025, the HCOB Eurozone Construction PMI slightly declined to 45.2 from 45.6 in May, experiencing its most significant drop in three months. The decrease in output was primarily influenced by a notable reduction in new orders. Weak demand conditions led companies to continue reducing their workforce and cutting back on purchasing inputs, marking 28 and 37 consecutive months of contraction, respectively. Notably, Germany and France were principal contributors to this downturn, with France exhibiting a more pronounced decrease, while Italy showed growth for the fourth consecutive month. Within various sectors, the residential sector remained the weakest performer, and commercial activity declined at a rate not seen in the past four months. However, a positive development emerged as civil engineering work expanded for the first time since March 2022, with growth observed across all three monitored economies. In terms of pricing, input cost inflation reached its highest level since December 2023, resulting in the quickest increase in output prices since September 2023. Lastly, companies expressed a pessimistic outlook for the upcoming year, expecting an overall decline in activity.