FX.co ★ Eurozone Construction Output Contracts the Least since February 2023

The HCOB Eurozone Construction PMI increased to 46 in April 2025 from a reading of 44.8 in March. This change reflects a continued decline in construction activity across the euro area, although the rate of decline is the slowest observed since February 2023. Despite marking the third consecutive year of contraction, the latest figures indicate a slight moderation in the downturn. New orders continued to fall but at a reduced rate, prompting further decreases in employment and purchasing activities. Input costs surged at the fastest rate in over a year, yet inflation remained below traditional levels. Improvements in delivery times suggested some recovery within supply chains. Nevertheless, the sentiment among firms worsened, with an increasingly pessimistic outlook for the coming year. Regionally, Germany experienced a deceleration in its slowdown, France encountered a somewhat deeper contraction, and Italy's construction sector remained relatively stable.