--- source: S&P Global (HCOB) url: https://constructuk.com/hcob-eurozone-construction-pmi-activity-contracts-at-slower-pace-in-february/ document_type: html date_retrieved: 2026-03-17 period: February 2026 parent_publication: HCOB Eurozone Construction PMI indicators_covered: [Construction PMI, New Orders, Employment, Input Prices, Business Confidence] countries: [Eurozone (Germany, France, Italy)] --- # HCOB Eurozone Construction PMI — February 2026 ## Overview The eurozone construction sector recorded a further decline in activity in February, though the rate of contraction eased from that seen a month prior, according to the latest HCOB PMI survey data. A solid decrease in output was driven by a sustained, albeit softer reduction in new orders, while downturns in the housing and commercial sectors also eased. The civil engineering sector saw a renewed and solid contraction, however. ## Key Headline Figures **HCOB Eurozone Construction PMI Total Activity Index: 46.0** (up from 45.3 in January) The seasonally adjusted index tracking monthly changes in total industry activity rose from 45.3 in January to 46.0 in February. The latest data signalled a solid drop in output across the sector, but one that eased from that seen a month prior. ### Activity by Country - **Germany**: Construction activity eased, with contractions observed at similar rates to France - **France**: Construction activity declined, with activity contracting across the sector - **Italy**: Companies registered growth for the first time in four months, albeit at a marginal rate ## Demand & New Orders Demand conditions at eurozone construction firms deteriorated further in February, although the pace of contraction eased on the month to the softest in three months. Weakness in the sales environment was evident in Germany and France, with both experiencing steeper reductions on the month. Conversely, firms in Italy recorded a rise in new order intakes for the first time in four months and at the fastest pace since last June. ## Input Costs & Price Pressures Cost pressures faced by construction firms strengthened during February. The rate of input price inflation reached the highest since April 2023. The overall increase in cost burdens was led by: - **Italy**: Fastest increase in operating expenses since January 2023 - **Germany**: Input price inflation hit a five-month high - **France**: Cost burdens eased slightly ## Employment Lower new order inflows led firms to reduce their staffing numbers midway through the first quarter, reversing the slight uplift seen in January. The rate of reduction was modest overall, but the sharpest since last November. By country: - **Germany**: Renewed fall in construction sector employment - **France**: Further moderate decline in headcounts - **Italy**: Employment levels rose modestly ## Input Purchasing & Supply Chain Input buying at eurozone construction firms declined again, taking the current contraction sequence to 45 months. France and Germany recorded sharp and accelerated decreases in purchasing activity. Firms in Italy meanwhile recorded a fractional rise in input purchases in the latest survey period that was the first in five months. Despite muted demand for inputs, average lead times lengthened solidly during February and to the most marked extent for exactly two years. All three monitored countries saw deteriorating vendor performance, led by Germany. Italian companies saw the steepest deterioration since last July. ## Business Confidence & Outlook Construction firms in the eurozone registered optimism about their activity outlook for the coming year for the first time in nine months. The degree of positive sentiment was moderate but the most pronounced since February 2022. - **Germany**: Expectations among German firms were the most upbeat for six years - **Italy**: Sentiment strengthened - **France**: Sustained pessimism, though only fractional and the least marked in the current 21-month sequence This marks a significant turning point, with business confidence reaching its **highest level since February 2022**. ## Sector-Specific Analysis Contractions in construction activity were observed in: - **Residential sector**: Downturn eased - **Commercial sector**: Downturn eased - **Civil engineering sector**: Saw a renewed and solid contraction (after showing initial recovery in January) Germany's civil engineering sector continues to benefit from the government's infrastructure package and has been growing steadily for four months. Italy's civil engineering returned to contraction after a brief upturn in January. France's civil engineering showed a deepening downward trend. ## Economist Commentary Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented: > The economic situation in the eurozone construction sector remains unsatisfactory. In February, weakness was observed across all three sectors monitored, namely residential, commercial, and civil engineering, after civil engineering had shown initial signs of recovery in the previous month. At the country level, the picture is somewhat more mixed. Italy's construction sector is returning to growth, while weakness persists in Germany and France. On civil engineering: > While civil engineering expansion in Germany has stabilized, this sector remains volatile in France and Italy and is weighing on the sector as a whole. In Germany, civil engineering is benefiting from the government's infrastructure package and has been growing steadily for four months. Although there was a slight slowdown in the rate of expansion in February, this is likely to be partly due to the unusually cold weather conditions. In Italy, civil engineering returned to contraction after a brief upturn in January, while in France the downward trend among the relevant companies deepened. Given the problems faced by the minority government in France in pushing through major projects, we do not expect any fundamental improvement in civil engineering here. On construction cost inflation: > Construction cost inflation has risen significantly in Italy and Germany, while it has eased somewhat in France. Higher energy prices are likely to have been the main factor behind this overall increase, as oil prices rose in February in response to mounting tensions in the Middle East. Given the crisis in this region, which catapulted oil and natural gas prices upward at the beginning of March, the cost situation for construction companies is likely to worsen, at least in the short term. ## Methodology Notes The HCOB Eurozone Construction PMI survey captures data collected at mid-month, asking respondents to compare business conditions with the previous month. A reading below 50.0 indicates contraction, above 50.0 indicates expansion, and exactly 50.0 indicates no change. The survey covers three main construction sectors: residential, commercial, and civil engineering. Data is compiled for the eurozone overall and tracked at the country level for Germany, France, and Italy.