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German Construction Continues to Contract in September

October 6, 2021 by Forex Winner Leave a Comment

German Construction Continues to Contract in September

Source: IHS Markit

German construction continued to post a contraction in September, albeit posting an improvement from the previous month.

  • The IHS Markit Germany Construction Purchasing Managers’ Index stood at 47.1 in September, up from 44.6 in August. This remains lower than the 50.0 threshold that separates expansion from contraction.
  • Civil engineering posted the biggest decline, as the decline in commercial activity fell by the weakest since March as residential projects inched closer to stabilization.
  • New orders in the construction remained subdued, as firms reported issues on new work due to a hike in prices and capacity constraints.
  • Firms reported higher prices for building materials and products during the month, specifically in insulation, steel, and timber, as levels remained higher than historical standards.
  • Material shortages weighed on purchasing activity, as buying levels declined in the past five months, even as the decline showed little change from the previous survey period.

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