Construction PMI: Positive Outlook Persists in UK and Italy, France Weakens

Research evidence excerpt

Construction PMI: Positive Outlook Persists in UK and Italy, France Weakens

on outlook became more pessimistic. While inflation did Sika Buy

cool in June, pricing still remains markedly higher than pre-war levels. Volution Buy

PAN EURO DISTRIBUTORS

Howden Joinery HoldGermany - Downturn abates. June remained in contraction but improved to 44.8 from 42.4

SIG Hold

in May, marking the highest reading in three months. All three end markets continued to Travis Perkins Unpf

contract, although trends were mixed with resi remaining the weakest segment with a steep UK PROPERTY SERVICES

and unchanged fall, while non-resi saw a notably softer contraction, easing to its mildest LSL Buy

decline in nearly a year. Civil remained the strongest of the three albeit still contracting slightly. IRISH HOUSEBUILDERS

. Glenveagh BuyWhile sentiment remained downbeat, the level of pessimism in activity expectations decreased

again in June, and the decline in new orders eased notably. While inflation dropped somewhat

from April's high, this still remains elevated.

Italy - Contraction worsens after May rebound. There was a more marked contraction in June,

declining to 45.4 from 49.4 in May. The decline in activity was driven by increased weakness

in civil and resi, with contraction of a lower magnitude in non-resi. Although order books saw a

faster decline in June and confidence among constructors dropped, growth expectations for

the next 12 months still managed to remain positive. While pricing remains elevated, inflation

in June fell to its lowest level since February.

Exhibit 1 - Construction PMI to June 2026

Devon Guffick * | Equity Associate 55

+44 (0)20 7548 4288 | dguffick@jefferies.com

Glynis Johnson * | Equity Analyst

45 44 (0) 20 7029 8677 | glynis.johnson@jefferies.com