Eurozone construction PMI rebounds to 43.7, with declining trend continuing for over four years

(1) S&P Global Eurozone Construction PMI rose to 43.7 in May 2026, higher than April's 41.7 (when the industry recorded the sharpest contraction since August 2024). However, the index remains far below the 50 threshold, indicating that the downward trend in the construction sector has persisted for over four years. (2) By country, France recorded the most severe contraction, Germany continued to decline significantly, and Italy saw the mildest deterioration. By sector, residential saw the fastest decline, while the rate of contraction in civil engineering was the slowest. (3) New business continued to drop sharply, though the rate of decline slowed compared to April, as demand conditions remained sluggish. In terms of prices, input cost inflation remained significant in May, with all three monitored economies reporting strong cost increases, led by Germany. (4) Construction companies remained pessimistic about activity prospects for the coming year, extending the prevailing negative sentiment into the third consecutive month.