FX.co ★ Eurozone Construction Downturn Accelerates in August

The S&P Global Eurozone Construction PMI dropped to 43.0 in August 2026 from 44.3 in July, indicating a sharper contraction in construction activity. Overall activity has now fallen for 52 consecutive months, with the downturn driven by more pronounced declines in France and Italy, while Germany posted its mildest contraction of 2026 so far. Housing registered the steepest decline, followed by commercial construction, and civil engineering activity also continued to contract. New orders fell at the fastest rate since April, triggering further job cuts and reductions in purchasing. Employment decreased for a seventh straight month, with job losses accelerating to a four-month high, although staffing in Italy increased for the second month running. Cost pressures continued to ease: input cost inflation slowed to a six-month low, and subcontractor rate inflation weakened to its lowest level since February. Looking ahead, business confidence remained negative, slipping to a three-month low, with French firms the most pessimistic.