Financial News: German Construction Downturn Eases In August

German Construction Downturn Eases In August

09/04/2026 - 04:16:00 (RTTNews)

(RTTNews) - Germany's construction sector downturn moderated notably in August amid a fresh growth in commercial activity, survey results from S&P Global showed Friday.

The construction purchasing managers' index climbed to 48.7 in August from 42.1 in July. Nonetheless, any reading below 50 indicates contraction.

Commercial activity expanded for the first time since July last year, though marginally. The decline in residential building activity softened sharply to the weakest since December 2025. Meanwhile, the civil engineering segment logged a renewed contraction.

New orders received by German constructors continued to decline at a marked pace in August due to high price levels and elevated borrowing costs. Firms scaled back purchasing activity, and they also reduced workforce numbers at the quickest rate since April.

On the price front, increased oil prices pushed the input price inflation to pick up for the first time in four months.

German constructors remained downbeat about output expectations over the year ahead amid concerns over a lack of new orders, squeezed disposable incomes, high costs, and ongoing risks posed by the Middle East war.

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