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The S&P Global Eurozone Construction PMI inched up to 43.4 in September 2026 from 43.0 in August, but remained well below the 50.0 threshold, indicating a significant contraction in construction activity. The downturn was broad-based across France, Germany, and Italy: France posted the steepest contraction, Germany experienced a much sharper decline, and Italy recorded the mildest fall. Residential construction registered the most pronounced downturn, with activity shrinking at its fastest pace since February 2025, driven primarily by Germany. New orders continued to decrease, extending the current demand slump to four-and-a-half years, although the rate of decline eased compared with August. Employment fell for the eighth month in a row, and purchasing activity also contracted sharply. Input price inflation accelerated for the first time since April, with cost pressures most intense in Italy and Germany. Looking ahead, business confidence remained negative, with expectations at their weakest since April, weighed down by subdued demand, rising costs, and tight budget conditions.
