FX.co ★ Eurozone Construction Slump Deepens

The Eurozone Construction PMI, as reported by HCOB, decreased from 46 in April to 45.6 in May 2025, indicating a more pronounced contraction in construction activity throughout the euro area. There was a significant decline in both overall activity and new order inflows, which led to additional cuts in employment and purchasing activity. Within the sectors, housing activity remained the most underperforming, while both commercial and civil engineering activities also experienced notable declines. Regionally, France and Germany were the primary contributors to the downturn, each recording steeper contractions. In contrast, Italy emerged as a positive outlier, achieving growth for the third consecutive month. Concerning pricing, input cost inflation rose to its highest level in 17 months. Despite these challenging conditions, construction firms in the eurozone maintained optimism about future activity over the coming year, marking the first instance of positive sentiment since February 2022.