S&P Global: Eurozone construction slump eases in April ’25

The eurozone construction sector remained in decline at the start of the second quarter of 2025, although the pace of contraction eased, according to the latest HCOB PMI data.

The headline Construction PMI rose to 46.0 in April from 44.8 in March, signalling a softer but still solid reduction in overall activity.

The slowdown was largely driven by a weaker downturn in Germany, while France experienced a slightly steeper decline, while activity in Italy remained broadly unchanged. Across the eurozone, all three main construction segments, residential, commercial, and civil engineering, continued to contract, though housing posted its mildest decline in over two years.

New orders fell for the 37th consecutive month, prompting further cuts to employment and purchasing. Staffing levels dropped at an accelerated rate in Germany and France, while Italy bucked the trend with its strongest employment growth of the year.

Input price inflation rose to a 15-month high, driven by higher raw material costs, but remained below the long-run average.

Despite a second consecutive month of shorter supplier delivery times, eurozone construction firms remained pessimistic about the outlook, with sentiment deteriorating further in France and Germany, while Italian firms reported a modest improvement in confidence.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama