The S&P Global Eurozone Construction PMI came in at 44.3 in July 2026, up from 42.8 in June, pointing to another sharp contraction but one that was the softest since March. Construction activity remained firmly in contraction across the region at the start of the third quarter, with declines continuing across all monitored sectors and the three largest economies, led by a sharper downturn in Germany. This was largely attributed to subdued demand, as new orders contracted at a faster pace. Meanwhile, cost pressures eased further as the energy-driven inflation spike following the Middle East conflict continued to retreat from April's record high.