---
source: S&P Global via constructuk.com
url: https://constructuk.com/hcob-eurozone-construction-pmi-activity-contracts-at-slower-pace-in-february/
document_type: html
date_retrieved: 2026-03-15
period: February 2026
parent_publication: HCOB Eurozone Construction PMI
indicator: Construction PMI
---

# HCOB Eurozone Construction PMI®: Activity Contracts at Slower Pace In February

## Key Findings

- **Reductions recorded across all three monitored segments**
- **Cost inflation at highest in nearly three years**
- **Business confidence reaches highest level since February 2022**

---

## Overview

The **HCOB Eurozone Construction PMI®** for February 2026 shows that eurozone construction activity contracted at a slower pace compared to previous periods. The headline PMI figure stood at **46.0**, indicating contraction below the 50.0 neutral mark.

The reading reflects a slowdown in the rate of decline across all three construction segments monitored: housing, commercial, and civil engineering.

---

## Detailed Analysis

### Activity Trends
Construction activity in the eurozone continued to fall during February, though the pace of contraction eased from previous months. Despite the ongoing contraction, the trend showed signs of stabilization.

### Segment Performance
Reductions were recorded across all three monitored segments:
- **Housing** — contracted
- **Commercial** — contracted
- **Civil Engineering** — contracted

### Cost Pressures
**Cost inflation reached its highest level in nearly three years**, indicating sustained pressure on construction company margins. This likely reflects ongoing supply chain challenges and inflationary pressures, particularly exacerbated by rising oil and natural gas prices following geopolitical tensions in the Middle East.

### Business Sentiment
**Business confidence reached its highest level since February 2022**, suggesting that construction firms, despite current activity contraction, are increasingly optimistic about future prospects. This forward-looking sentiment may be supported by anticipated demand recovery or policy support measures.

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## Key Data Points

| Metric | Value | Status |
|--------|-------|--------|
| **PMI Headline** | 46.0 | Contraction (below 50.0) |
| **Cost Inflation** | Highest in ~3 years | Rising |
| **Business Confidence** | Highest since Feb 2022 | Improving |
| **Activity Trend** | Slower pace of decline | Stabilizing |

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## Commentary

The February 2026 report highlights a **mixed outlook for Eurozone construction**:

- **Negative:** Continued contraction in activity across all three segments; cost pressures remain elevated, particularly driven by geopolitical events affecting energy prices.
  
- **Positive:** The easing pace of decline and highest business confidence since early 2022 suggest that the worst may be behind the sector. Construction firms are building confidence for future recovery.

### Supply Chain & Cost Pressures

The report notes that **oil and natural gas price increases** became more pronounced at the beginning of March (following the February data collection period), which "is likely to worsen" the cost situation for construction companies "at least in the short term."

The crisis in the Middle East region, which drove oil and natural gas prices upward at the start of March, presents downside risk to the sector's near-term margin pressures.

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## Methodology

The PMI (Purchasing Managers' Index) is constructed from **responses at mid-month** from construction companies across the eurozone. Respondents compare a variety of business conditions with the situation one month prior.

**PMI Interpretation:**
- **Reading below 50.0** = economy generally declining
- **Reading of 50.0** = no change from previous month
- **Reading above 50.0** = economy generally expanding

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## Source Note

This is a **limited sample** of PMI headline data displayed on the S&P Global service, published under license. Full historic PMI headline data and all other PMI sub-index data and histories are available on subscription from S&P Global. 

For further information: **economics@spglobal.com**

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**Release Date:** March 5, 2026  
**Data Period:** February 2026  
**Publication:** HCOB Eurozone Construction PMI®