Eurozone construction PMI falls as new orders drop
By Benjamin Chiou
Date: Friday 04 Sep 2026
(Sharecast News) - The downturn across the eurozone construction industry deepened in August as new orders shrank at their fastest pace in four months, according to data out on Friday from S&P Global.
The S&P Global construction purchasing managers' index fell to 43.0 last month, down from 44.3 in July, marking the 52nd straight monthly contraction across the sector.
While momentum began to pick up in Germany, where the reduction in activity was its softest over the year to date, the decline in France picked up to its steepest rate since May 2020 as new orders tanked.
Housing activity and commercial construction both fell at an increased rate, while civil engineering continued to see a "solid" decline in output, according to S&P Global.
Meanwhile, employment levels across the sector fell for the seventh straight month, with steep reductions in workforce numbers seen in France and Germany.
"August data revealed a sharper downturn in construction activity, largely in response to a steeper deterioration in demand conditions," said Usuamah Bhatti, economist at S&P Global Market Intelligence.
Ongoing weakness across the sector continues to weigh heavily on the future outlook, with firms giving another downbeat assessment of prospects over the coming year, the data showed.
"According to panel members, headwinds to activity stemmed from inflationary concerns and the war in the Middle East. Companies will take heart from the fact that overall cost inflation trended downwards again to reach a six-month low, however," Bhatti said.
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