Downturn in eurozone construction sector deepens in June

(Sharecast News) - The downturn in the eurozone construction sector deepened in June, according to a survey released on Monday. The S&P Global eurozone construction PMI total activity index fell to 42.8 from 43.7 in May. The decline in output was sharper than the post-pandemic average, S&P Gobal said.

A reading above 50.0 indicates expansion, while a reading below signals contraction.

Construction activity contracted across the three largest eurozone economies, led by an accelerated decline in France. Germany was the only economy to see the pace of contraction ease from May, though the fall in activity remained robust overall.

In terms of sectors, residential construction remained the worst-performing segment, followed by commercial activity, while civil engineering recorded the softest fall.

The survey also showed that the rate of input price inflation eased to the lowest since March, although costs pressures faced by construction firms remained significant in June.

Usamah Bhatti, economist at S&P Global Market Intelligence, said: "The health of the eurozone construction sector remained weak in June, with all three monitored segments recording accelerated declines. As a result, total activity fell at a steeper rate at the end of the first half of 2026. Weak business requirements also led construction companies to lower both purchasing activity and employment further, while pessimism towards the year-ahead outlook strengthened slightly from May.

"There were some tentative positives in the June data, however. New orders fell at the softest pace in four months, while the lengthening of lead times was the least marked for three months amid positive developments regarding the war in the Middle East. In turn, the rate of input cost inflation eased further from April's recent peak, as all three monitored countries reported softer increases in cost burdens and signs of easing raw material prices."