FX.co ★ Eurozone Construction Downturn Continues

In November 2025, the HCOB Eurozone Construction PMI increased to 45.4, up from October's 44.0, yet it remained under the 50 threshold indicative of growth. Construction activity across the region continued its downward trend, although the rate of contraction decelerated, driven by slower reductions in residential construction and civil engineering sectors. Commercial construction, however, experienced a sharp decline, remaining consistent with October's performance. France experienced the steepest decrease in output, while Germany's contraction showed signs of easing, and Italy noted a marginal decline following a slight increase in October. New orders contracted at their slowest rate in seven months, but continued subdued demand resulted in limited employment and purchasing activities. The use of subcontractors dropped significantly, albeit at a slower pace than in the previous month. Input prices rose robustly in November, with Germany experiencing the highest rate of inflation. Overall sentiment across the eurozone deteriorated, with France displaying the most pessimism, while Italian companies were marginally more optimistic despite a considerable dip in confidence from earlier months.