Latest data released by Markit - 7 January 2021
- Prior 45.6
The downturn in the German construction sector shows more signs of easing towards the end of last year, as total industry activity fell by its slowest pace in four months. That said, the trend remains rather varied when looking at the details.
Housing activity stayed more robust, remaining the only area of growth while commercial and civil engineering projects are still reflecting a contraction. Markit notes that:
"December's construction data pointed to increasing signs of stability after a challenging period for the sector, with the headline PMI moving to a four-month high and new orders showing the smallest decline since the start of the pandemic.
"There were a number of other positive takeaways from the latest survey, including a further easing in the rate of job cuts and a first rise in constructors' purchasing activity for ten months. The latter, however, looks to be partly a reaction by building firms to the increasing strain on supply chains, with average lead times on building materials and products increasing to the greatest extent since last April and purchase price inflation accelerating sharply.
"Despite ending 2020 on a more stable footing, constructors still don't share the same optimism about the outlook as their manufacturing and services counterparts, with many building companies concerned about pandemic's impact on client budgets and investment demand."
