Financial News: German Construction Sector Downturn Deepens

German Construction Sector Downturn Deepens

08/06/2026 - 03:53:00 (RTTNews)

(RTTNews) - Germany's construction sector downturn deepened in July with building companies reporting further declines in total activity and new orders, survey results from S&P Global showed Thursday.

The construction Purchasing Managers' Index posted 42.1 in July compared to 44.8 in June. This was the lowest score in three months.

The main drag continued to come from the housing sector, which saw activity fall at the quickest rate for three months. Work on commercial building projects also dropped at an accelerated pace.

Meanwhile, civil engineering activity went against the trend and recorded a renewed increase in July.

"With firms reporting headwinds to growth from high prices, an alleviation of supply-side pressures is needed to lay the foundations for a recovery," S&P Global Market Intelligence Economics Associate Director Phil Smith said.

Firms reported continued fall in new orders due to delayed decision-making and a squeeze on demand from high prices. Job losses continued for the sixth month in July, reflecting the non-replacement of staff. There was deeper cut to builders' purchasing activity.

Regarding prices, the survey showed that input prices increased again but slowed from April's peak to its lowest since February.

Further, the survey showed that constructions maintained a pessimistic outlook for activity in the coming year.

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