FX.co ★ Eurozone Construction Slump Deepens as HCOB PMI Falls to 45.3 in January

The euro area’s construction sector contracted at a faster pace at the start of 2026, as the HCOB Eurozone Construction PMI slipped to 45.3 in January 2026 from 47.4 in December 2025. The latest reading, updated on 5 February 2026, underscores a worsening monthly trend in activity across the bloc, with the index moving further below the 50-point threshold that separates expansion from contraction.

On a month-over-month basis, January’s decline signals that the downturn in construction output has intensified compared with December, when conditions had already been weakening. The December 2025 reading of 47.4 itself represented a contraction versus the previous month, and January’s sharper fall to 45.3 suggests mounting pressure on the sector as the new year begins.

The sequential deterioration in the PMI indicates that construction companies across the eurozone are facing a more challenging operating environment, with activity levels cooling further compared with late 2025. Market participants will be watching upcoming releases closely for signs of stabilization or any further slide in the construction outlook.