Eurozone construction decline eases slightly
By Benjamin Chiou
Date: Thursday 04 Dec 2025
(Sharecast News) - The decline in business activity across the eurozone construction sector eased slightly in November, but remained firmly in negative territory for the 43rd straight month.
The eurozone construction purchasing managers' index, conducted by Hamburg Commercial Bank and S&P Global, rose to 45.4 last month, up from 44.0 in October.
This was marginally ahead of the 45.1 consensus forecast but still well below the neutral 50-point mark that separates growth from contraction.
The housing sector registered the strongest overall drop in activity, though the rate of decline softened from the month before, while the decline in commercial construction output fell at the same pace. Civil engineering meaning saw only a fractional decline in activity.
Weak demand conditions were blamed on the ongoing construction downturn across the region, though new orders dropped by their lowest rate in seven months.
However, payrolls numbers across the industry continued to decline - a trend that began in March 2023.
Meanwhile, input price inflation intensified from the previous month, though in line with the average rate seen over 2025 to date.
"In our view, the continuing weakness of the construction sector is due to relatively high long-term interest rates, the recent acceleration in construction costs, and the slow progress in simplifying building regulations and speeding up building permit procedures," said Cyrus de la Rubia, chief economist at HCOB.
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