The HCOB Eurozone Construction PMI edged down to 44.7 in July 2025 from 45.2 in the previous month, marking its steepest decline since February. All three main sectors—residential, commercial, and civil engineering—contracted. Regionally, France recorded the sharpest downturn, with the rate of reduction the fastest in ten months, while Italy registered its first decline in five months. Meanwhile, German activity remained on a path to recovery, with the rate at which output falling still sharp but the weakest in 2-1/2 years. The continued curtailment of construction activity was primarily attributed to weak demand conditions, reflected in a sharp fall in new orders. As a result, firms cut staffing levels in July and reduced purchasing activity at the quickest pace since last December. Moreover, input price inflation slowed to a three-month low. Business sentiment remained negative, with confidence in future activity at its lowest since February.