Eurozone construction companies continue to feel the pinch - PMI

5th Mar 2026 11:27

(Sharecast News) - The Eurozone's hard-pressed construction sector remained under pressure in February, a closely-watched survey showed on Thursday, as output fell and cost inflation rose

The HCOB Eurozone construction PMI total activity index came in at 46.0 in February. That was up on January's 45.3 but remains firmly below the neutral 50.0 benchmark. A reading above 50.0 suggests growth while one below it indicates contraction.

Respondents flagged a "solid" decrease in output, with new orders remaining under pressure, while cost inflation was the highest for nearly three years.

The PMI in Germany, the European Union's biggest economy, fell to 43.7 from 44.7 in January, the lowest reading since October.

In France it came in at 43.9, up marginally from 43.5. But in Italy it edged back into positive territory, at 50.4.

The downturns in both the housing and the commercial sectors eased during the month, the survey showed. But civil engineering experienced a "renewed and solid contraction".

However, while conditions remained challenging, sentiment strengthened, with the outlook turning positive for only the second time in four years.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: "The economic situation in the Eurozone construction sector remains unsatisfactory.

"Cost inflation has risen significantly in Italy and Germany, while it has eased somewhat in France. Higher energy prices are likely to have been the main factor behind this overall increase, as oil prices rose in February in response to mounting tensions in the Middle East.

"Given the crisis in the region, the cost situation for construction companies is likely to worsen at least in the short term."

Data were collected between 10 and 27 February, ahead of the US attacking Iran last weekend. Questionnaires were sent to purchasing managers in a panel of around 650 construction firms in Germany, France, Italy and Ireland.