Financial News: German Construction Sector Contracts At Slower Pace

German Construction Sector Contracts At Slower Pace

04/08/2026 - 04:33:00 (RTTNews)

(RTTNews) - Germany's construction sector shrank at a slower pace in March and the outbreak of war in the Middle East intensified cost pressures, survey results from S&P Global showed Wednesday.

The construction Purchasing Managers' Index rose to 48.0 in March from 43.7 in February. A score above 50.0 indicates expansion. The reading was the highest registered so far in 2026.

New orders declined for the third straight month and reached its fastest since July last year. Due to the reduction in workloads, companies remained in retrenchment mode in March.

The survey showed a record rise in input price inflation as the conflict in the Middle East worsened supply chain delays. Firms' expectations for the year ahead registered a marked deterioration.

Housing activity decreased at a much slower rate than the month before and posted its shallowest decline in the year-to-date. The weakest-performing segment in March was commercial activity. Meanwhile, constructors reported a sustained upturn in work on civil engineering projects, with the rate of expansion accelerating from the previous month.

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