The HCOB Eurozone Construction PMI fell to 46 in September 2025, from 46.7 in the previous month, indicating a further contraction in the sector. The decline in output was broad-based across all three monitored segments, with residential construction emerging as the worst-performing sector. Moreover, new orders continued to fall sharply, with notable contractions in both France and Germany. Subsequently, construction firms continued to scale back their workforce. However, the pace of job shedding eased to its slowest in six months. On the cost front, input price inflation accelerated in September, driven primarily by a sharp increase in operating expenses in Germany, marking the steepest cost rise in three months. Lastly, business confidence among eurozone construction companies remained subdued, with September marking the fourth consecutive month of negative sentiment. The overall level of pessimism was the sharpest in eight months.