Building & Construction: Bricks and Mortar Databook | Europe

Research evidence excerpt

Building & Construction: Bricks and Mortar Databook | Europe

Foundation

July 3, 2026 08:28 AM GMT

Morgan Stanley & Co. International plc+MBuilding & Construction: Bricks and Mortar Cedar Ekblom, CFA

Databook | Europe Equity Analyst

Cedar.Ekblom@morganstanley.com +44 20 7425-4623

Oscar P Smyth

Research AssociateEurope stronger, UK weaker, US Oscar.Smyth@morganstanley.com +44 20 7425-6567

Daniel Khajenouri

Equity Analystconstruction spend negative Daniel.Khajenouri@morganstanley.com +44 20 7425-3065

Peter Ajose-Adeogun

Equity AnalystYoY but varied by end market Peter.Ajose-Adeogun@morganstanley.com +44 20 7677-1618

This chartbook summarises key data (PMIs, construction Building & Construction

Europe

spending, building permits, product pricing) for construction Industry View In-Line

markets that matter for our European Construction coverage.

Key Takeaways

EU: PMI and confidence indicators strengthened sequentially. Pricing sentiment

firming, some bright spots for May PPIs but broadly yet to reflect this.

US: Construction spending -1.5% YoY in May but varied by end market: DC

construction +23.1%, private nonresi -6.6% YoY, public construction +0.3% YoY.

Preferred names in Europe: EU lightside: Saint Gobain, Kingspan, Rockwool. EU

heavyside: Heidelberg. Building products: Belimo.

Least preferred names: Heat pumps: Nibe, Ariston. Rich valuation with little

earnings growth: Geberit. Earnings risks and slow recovery: Wienerberger.

Zooming in on EU PMIs. 43.7 in May, up from 41.7 in April. Housing construction

PMI improved to 42.9 from 40.7, driven by increases in Germany (39.8 vs 37.2),

France (41.1 vs 40.4 ) and Italy (48.8 vs 45.1), partially offset by a decrease in the UK

(36.0 vs 38.7). Commercial construction PMI moved up to 43.2 from 40.6, while