Latest data released by Markit - 5 December 2019
- Prior 51.5
The recovery in construction activity continues with the print here rising to a seven-month high. Markit notes that the improvement is on the back of homebuilding once again, helping to offset the deepening decline in commercial work. Adding that:
"Latest PMI data paint a healthier picture of the German construction sector as we move through the final quarter of the year. However, in reality, homebuilding remains the only area of real strength, buoyed by pent-up demand for housing, favourable borrowing conditions and rising property prices. Both commercial and civil engineering activity remain weak, albeit with the drag from work on infrastructure projects gradually fading."
This reaffirms more mixed sentiment in the construction sector in Q4 but amid the manufacturing recession, the German economy should still remain more flat and sluggish as we look towards next year.
