Latest data released by Markit - 6 September 2021
- Prior 47.1
The index hits a three-month low as a renewed decline in residential activity weighed on the construction sector last month, adding to challenges faced by new orders amid supply shortages and rising costs of raw materials. Markit notes that:
"German construction companies reported another challenging month in August, latest PMI data showed. One of the main concerns remains a rapid increase in the cost of building materials and products, which companies say is hitting demand as the price of building work rises accordingly.
"These price pressures stem from ongoing issues in supply chains, with many construction firms highlighting widespread shortages and longer wait-times on inputs.
"Nevertheless, the data at least point to a slight improvement in constructors' expectations towards activity over the coming year, albeit with the pessimists still slightly outnumbering the optimists.
"The sector is struggling to gain any traction, and to add to matters, a fall in residential building work - the sector's main bright spot - created an additional drag on overall activity in August."
