Eurozone construction sector downturn deepens in July
By Michele Maatouk
Date: Wednesday 06 Aug 2025
(Sharecast News) - The downturn in the eurozone construction sector deepened in July, according to a survey released on Wednesday.
The HCOB eurozone construction PMI total activity index fell to 44.7 from 45.2 in June. This marked the strongest rate of decline since February, with the index below the 50.0 mark that separates contraction from expansion for 39 months in a row.
The German construction PMI printed at 46.3 in July, up from 44.8 in June and its highest reading since February 2023.
In Italy, the PMI fell to 48.3 last month from 50.2 in June, dropping below the 50.0 mark into contraction territory.
The PMI for France, meanwhile, declined to 39.7 - its lowest reading in 10 months - from 41.6 in June. The downturn in France has been uninterrupted since June 2022.
Norman Liebke, economist at Hamburg Commercial Bank, said: "The three countries - Germany, France, and Italy - were weak at the start of the second half of 2025, with the French construction sector contracting the most. The employment situation remains weak, new orders continue to decline, and European construction companies themselves are not particularly optimistic about the coming twelve months
"All three sectors - residential, commercial, and civil engineering - contracted in July. Even though residential and commercial construction are no longer shrinking as sharply as they did in June, the recession is clearly visible. Civil engineering is not trending any better.
"The outlook for European construction companies remains weak. New orders continue to decline and fell by nearly four index points in July, and the employment situation remains tense. The construction companies themselves expect weak activity over the coming twelve months, with only the Italian companies remaining optimistic."
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