Eurozone construction output fell by 1.2% year over year in March 2026, following an upwardly revised 3% slump in February, marking a third consecutive month of contraction in the sector. Building activity remained the key drag, dropping 7.1%, even as the pace of decline moderated from 10% in the month before. At the same time, output fell less for specialized construction activities (-0.7% vs -1%), while it rebounded for civil engineering (3% vs -3.3%). Among major economies, output fell in Germany (-1.5% vs -3.6%), France (-3.3% vs -3.5%) and Spain (-4.4% vs -14.9%) and Italy (-0.2% vs 0.8%). On a monthly basis, construction output rose by 0.8%, after an upwardly revised 0.8% decrease in the prior month.