FX.co ★ Eurozone Construction Contraction Eases as HCOB PMI Climbs in May

The euro area’s construction sector showed signs of stabilizing in May, as the HCOB Eurozone Construction Purchasing Managers’ Index (PMI) rose to 43.7 from 41.7 in April 2026, on a month-over-month basis. Although the index remains below the 50.0 threshold that separates expansion from contraction, the latest data points to a slower pace of decline across the bloc’s building activity.

The improvement in May follows a weaker reading in April, when the PMI had fallen to 41.7. The month-over-month comparison indicates that while the sector is still under pressure, conditions have become less severe, suggesting that the downturn in eurozone construction may be gradually losing momentum.

The updated figures, released on 4 June 2026, will be closely watched by investors and policymakers for signs that the construction industry—often a bellwether for broader economic confidence and investment—is moving toward stabilization, even if a return to outright growth has yet to materialize.