Financial News: Germany Construction Activity Contracts Most Since Early 2

Germany Construction Activity Contracts Most Since Early 2025

11/05/2026 - 05:28:00 (RTTNews)

(RTTNews) - Germany's construction activity contracted the most since early 2025 in October, survey data published by S&P Global showed on Thursday.

The construction Purchasing Managers' Index fell to 41.6 in October from 43.5 in the previous month. The latest score was the lowest since March 2025.

The main drag on activity was the housing sector, which contracted at a rapid pace. Work on commercial building projects fell sharply, marking the steepest fall since July. At the same time, civil engineering registered the softest decrease.

The downturn in activity coincided with a further intensification of cost pressures.

New orders fell at the fastest pace in six months. Further, headwinds to demand and concerns over high long-term interest rates weighed on firms' expectations for activity in the coming year.

Employment continued to fall in October but the pace of job shedding eased to the weakest since June. Purchasing activity dropped at a slower pace in October and lead times on purchases lengthened to the greatest extent for four months.

Input price inflation hit its highest since June and rates charged by subcontractors were the second-sharpest in almost four years.

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