The HCOB Construction PMI dropped to 44 in October 2025, its steepest decline in eight months and well below the 50 mark that signals growth, from 46 in September. Output contracted sharply as new orders slumped, driven by deeper downturns in housing and civil engineering, while commercial activity also weakened. Germany and France saw continued contractions, with France declining the fastest, while Italy recorded only marginal growth after four months of declines. Firms cut jobs and purchasing again, extending long-running retrenchment, and subcontractor use fell sharply. Input cost inflation eased to a seven-month low, though French cost pressures picked up. Supply chains worsened slightly, with all three major economies reporting longer lead times. Businesses remained pessimistic about the year-ahead outlook amid weak demand, although Italian firms were the most optimistic in nearly a year and a half, contrasting with worsening sentiment in France and persistent caution in Germany.