The latest HCOB PMI survey data indicated that the Eurozone construction sector remained in decline midway through the third quarter, although the rate of contraction softened compared to July. New orders fell at a weaker yet still sharp rate, which contributed to sustained reductions in employment and purchasing. Price pressures also eased to the softest since April, and were broadly in line with the average seen in 2025 so far. Companies were increasingly pessimistic regarding the year-ahead outlook for activity, however, with the degree of negative sentiment at its most pronounced in seven months.
The HCOB Eurozone Construction PMI Total Activity Index — a seasonally adjusted index tracking monthly changes in total industry activity — rose from 44.7 in July to 46.7 in August, signalling a solid, but softer reduction in total construction activity across the euro area. Activity has now fallen consistently for 40 months, though the latest decrease was the least pronounced for two-and-a-half years. The slower decline largely reflected a much softer reduction in France, while the contractions in Germany and Italy strengthened slightly.