Germany’s construction slowdown softens for 3rd month – PMI

Germany’s construction sector remained deeply contracted in July, though the rate of decline eased for the third consecutive month, the latest HCOB PMI® survey compiled by S&P Global showed on Tuesday.

The Total Activity Index rose slightly to 40.0 from 39.7 in June, the highest level since August of the previous year. Despite the slight improvement, activity across the housing, commercial, and civil engineering sectors continued to fall.

Employment and purchasing activity in the construction sector also declined, but at a slower pace. Lead times for purchases improved significantly, approaching June’s record, while average prices for building materials dropped for the fourth consecutive month, indicating ongoing demand weakness.

New orders continued to decrease, extending a nearly two-and-a-half-year decline. Firms expressed greater pessimism about future activity compared to June, marking the lowest outlook since March.

Attribution: HCOB Germany Construction PMI®