Financial News: German Construction Activity Slides Into Contraction

German Construction Activity Slides Into Contraction

02/05/2026 - 04:25:00 (RTTNews)

(RTTNews) - Germany's construction activity returned to contraction in January after rising for the first time in almost four years in December, survey data from S&P Global showed on Thursday.

The HCOB construction Purchasing Managers' index posted 44.7 in January, down from 50.3 in December.

A score below 50.0 indicates contraction. The reading signaled that the sector shrank at the fastest rate in three months.

The renewed decline in total activity reflected accelerated downturns in the housing and commercial segments. In contrast, there was a sustained upturn in civil engineering activity, which has expanded in six of the past eight months.

"This is a very rocky start to the new year for the residential and commercial construction sectors," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said. The economist said the unusual chilly weather could perhaps be blamed for the contraction in construction but overall the survey results are not encouraging.

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