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Financial News: German Construction Activity Expands In August

German Construction Activity Expands In August

09/06/2018 - 04:55:00 (RTTNews)

(RTTNews) - Germany's construction activity returned to growth midway through the third quarter after having stalled in July, survey results from IHS Markit showed Thursday.

The headline construction Purchasing Managers' Index ticked up to 51.5 in August from 50.0 'no-change' mark in July.

The top-performing construction sub-sector in August was civil engineering. The rates of growth of both infrastructure and commercial activity were only moderate.

New orders decreased amid reports of already-full utilization of resources. Pressure on capacity led to constructors taking on additional staff during August.

Adding to the cost pressures faced by constructors, August saw a steep and accelerated increase in average prices paid for building materials and products.

The rate of inflation was the quickest since October last year, with a number of surveyed businesses linking the rise in input prices to the effects of new road toll charges.

Constructors' expectations towards activity over the next 12 months softened in August. The degree of optimism was at the lowest since November 2016.

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