FX.co ★ Eurozone Construction Downturn Softest in Almost 3 Years

The HCOB Eurozone Construction PMI improved to 47.4 in December 2025, up from 45.4 in the previous month, indicating the mildest contraction since February 2023. This positive shift primarily resulted from renewed expansion in Germany and a deceleration in the decline of residential construction. Commercial activity also contracted at a more moderate rate, while the decrease in civil engineering quickened slightly compared to November. France and Italy experienced the steepest declines in output, whereas Germany registered slight growth. New orders dwindled more swiftly, with France being the most adversely impacted, while Germany experienced the slowest decline since March 2022. Employment levels remained largely stable, as increases in Germany and Italy balanced out ongoing job losses in France. Though the usage of subcontractors and purchasing activity diminished, their rates of decline were less pronounced. Input prices surged significantly, reaching a six-month peak, with France and Italy experiencing the fastest inflation rates. Business sentiment weakened throughout the eurozone, with France being the most pessimistic and Italy showing a slight uptick in optimism.