Eurozone construction activity contracts in May amid supply issues in World Economy News 05/06/2026 Eurozone construction activity remained in contraction during May, with the S&P Global Eurozone Construction PMI Total Activity Index rising to 43.7 from 41.7 in April. The index reading below 50 indicates continued decline in the sector, though the pace of contraction slowed from the previous month. All three major economies monitored showed declining activity. France recorded the steepest contraction, while Italy posted the weakest decline. German construction activity fell at a robust pace. Each country showed slower rates of decline compared to April. Activity dropped across all three construction subsectors, with housing experiencing the fastest decline and civil engineering the slowest. All three sectors showed improved rates compared to the previous month. New orders continued to fall sharply in May, though the rate of decline eased from April. French companies saw the fastest drop in new orders, while Germany’s downturn slowed. Italian companies recorded the softest decline over the three-month contraction period. Construction firms reduced purchasing activity in May, though less sharply than in April. France and Germany continued to cut back on purchases at rates similar to the previous month, while Italian firms registered a slight increase for the first time since February. Supplier delivery times lengthened to the greatest extent since December 2022. Germany recorded the worst deterioration in vendor performance in nearly four years. Lead times also extended in France and Italy, but to a lesser degree than in April. Input price inflation remained substantial, though it eased from April’s three-and-a-half-year high. All three monitored economies saw robust rates of cost inflation, with Germany leading the increases. Employment in the sector fell at a slightly slower pace in May. German job losses softened, and Italian companies registered a twenty-first