Construction activity across the eurozone declined at a faster rate in August, with the S&P Global Eurozone Construction PMI Total Activity Index falling to 43.0 from 44.3 in July.
The latest reading marked the 52nd consecutive month in which the index remained below the 50.0 threshold separating expansion from contraction.
France recorded the fastest decline among the countries covered, with construction activity falling at its sharpest rate since May 2020. Italian construction companies reported their quickest contraction in four years, while Germany recorded its slowest decline so far in 2026.
New Orders Record Faster Decline
New business received by eurozone construction companies decreased at the fastest rate since April.
Activity declined across all three construction sub-sectors monitored by the survey. Housing recorded the largest contraction, followed by commercial construction, while civil engineering posted the smallest decline.
Employment decreased for the seventh consecutive month, with the rate of job reductions accelerating to a four-month high.
France and Germany recorded faster reductions in workforce numbers, while employment among Italian construction companies increased for the second consecutive month.
Input Cost Inflation Eases
Input cost inflation moderated to a six-month low in August, although it remained above the survey’s historical average.
The rate of input cost inflation slowed in Italy, while Germany and France recorded slight accelerations during the month.
Construction companies remained negative about activity prospects for the next 12 months, with the level of pessimism unchanged from July’s three-month high. French companies reported their most negative outlook since April.
The survey data were collected between August 12 and August 28, 2026.
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