The S&P Global Eurozone Construction PMI fell to 44.6 in March 2026, down from 46.0 in February, marking the sharpest contraction in activity since October 2025 and extending the sector’s decline for nearly four years. France led the downturn with its steepest drop in 18 months, followed by Italy and Germany. By sector, commercial construction suffered the most severe decline, closely trailed by residential building, while civil engineering also contracted, though at a slightly slower pace. New orders plunged at the fastest rate in five months, and job cuts accelerated to a four-month high. Adding to the pressure, input cost inflation surged to its highest level since November 2022, driven by material shortages, shipping delays, and soaring raw material and energy prices, exacerbated by ongoing Middle East conflicts. Meanwhile, business confidence hit its lowest point of 2026, reflecting deepening pessimism across the sector.