Eurozone Construction Activity in Decline

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FM newsroom – construction industry. The eurozone’s construction sector shrank for the 38th consecutive month in June 2025, and at an accelerating pace, according to a survey released Friday by Hamburg Commercial Bank (HCOB) and S&P Global Market Intelligence in London.

The Purchasing Managers’ Index (PMI) for eurozone construction activity dropped to 45.2 points in June, down from 45.6 in May, moving even further below the critical 50-point threshold that separates growth from contraction, FMbussiness.hu reports with reference to mti.

New Orders Fall, Hiring and Purchasing Decline

June saw a continued drop in new construction orders, leading to further declines in employment and material purchasing. Among the various construction segments, the residential building sector remained the worst-performing last month.

However, there was a positive development: civil engineering works expanded for the first time since March 2022.

Industry Braces for Further Weakness

Construction firms across the eurozone remain pessimistic about the outlook for the coming year, expecting a continued weakening of activity in the sector.

Regionally, the survey found that construction activity slowed further in Germany and France in June, while Italy recorded its fourth consecutive month of acceleration.

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