Financial News: German Construction Sector Downturn Eases

German Construction Sector Downturn Eases

05/07/2025 - 04:50:00 (RTTNews)

(RTTNews) - Germany's construction sector downturn eased in April as total industry activity and new orders declined at slower rates, purchasing managers' survey data published by S&P Global showed Wednesday.

The HCOB construction Purchasing Managers' Index advanced to 45.1 in April from 40.3 in the previous month. This was the highest reading in more than two years.

However, the score is firmly below the neutral threshold 50.0 mark suggesting contraction.

The survey showed slower decreases in activity in each of three broad construction categories monitored by the survey.

Housing continued to register the steepest rate of decline, but one that was the least marked since February 2023. Commercial activity shrank at its softest pace in nearly two years, while civil engineering, which was again the best-performing segment, showed only a moderate drop that was the slowest for 14 months.

The survey showed a slower fall in new orders in April. The corresponding sub-index recorded one of its biggest monthly rises in the series history. Firms were more pessimistic about the outlook than in March, although confidence levels were still the second-highest in the past 38 months.

Further, there was a slight pick-up in the rate of job shedding across the building sector in April.

The rate of contraction in constructors' purchasing activity eased for the fourth straight month and was the weakest since January 2023.

Constructors faced a third straight monthly rise in rates charged by subcontractors. The rate of input cost inflation remained relatively subdued despite ticking up to a 14-month high.

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