Eurozone Construction Output Fell Sharply in October
Last month, eurozone construction activity experienced its steepest decline since March. In Germany, the sector was described as "sinking deeper into the proverbial swamp," while in politically paralysed France, construction demand dropped sharply—the worst since the peak disruptions of the COVID-19 pandemic in May 2020. Italy was the only country to report a second consecutive monthly rise in new order intakes.
Data Source and Scope
The information comes from the Hamburg Commercial Bank (HCOB) Purchasing Managers’ Index, published by S&P Global Market Intelligence. This index surveys construction purchasing managers across Germany, France, and Italy, providing insight into the health of the eurozone construction sector.
Positive Signs in the Broader Eurozone Economy
Despite the poor construction figures, the overall eurozone economy expanded at its fastest rate since May 2023. This growth stemmed from increased activity in the service sector and stronger overall demand, according to the HCOB Eurozone Composite Purchasing Managers’ Index by S&P Global.
"October 2025 could be one of the last, tricky bends on the way to a better 2026," suggesting that while construction remains weak, the broader economy shows promise.
Germany’s Construction Challenges
Germany's construction output fall was sharper in October than September, driven mainly by a notable drop in new orders for housing and civil engineering projects. Although the commercial sector also declined, its fall was less severe.
France and Italy Overview
- France experienced its steepest decline in construction demand since May 2020 amidst political paralysis.
- Italy stood out with continued growth in new construction orders for the second month running.
Summary
The eurozone construction sector faced significant setbacks in October 2025, with mixed fortunes across member countries; however, broader economic indicators hint at potential recovery ahead.