The HCOB Eurozone Construction PMI rose to 47.4 in December 2025 from 45.4 in November, signaling the softest contraction since February 2023. The improvement was mainly attributed to renewed expansion in Germany and slower reductions in residential construction. Commercial activity also fell at a softer pace, while civil engineering decreased slightly faster than in November. France and Italy registered the sharpest drops in output, while Germany saw marginal growth. New orders fell at a faster pace, with France hardest hit and Germany’s decline the slowest since March 2022. Employment was broadly unchanged, with rises in Germany and Italy offsetting continued job cuts in France. Subcontractor usage and purchasing activity decreased, but at slower rates. Input prices rose sharply, hitting a six-month high, with France and Italy seeing the fastest inflation. Business sentiment weakened across the eurozone, with France the most pessimistic and Italy slightly more optimistic.
