Latest data released by Markit - 5 November 2020
- Prior 45.5
The downturn in construction activity extends into October with declines in new orders observed once again to start Q4. Housing activity is the only sector to see growth, with commercial and civil engineering categories slipping once again.
As a whole, this just reaffirms that the economic recovery has lost some steam in the construction sector and with tighter restrictions this month, the outlook doesn't bode well heading towards the year-end. Markit notes that:
"Construction activity in Germany lost further ground in October, with the PMI signalling a downturn that has now lasted eight months. The residential sector continues to defy the broader slowdown, but its rate of growth is slow and being offset by declines in both commercial and civil engineering activity.
"COVID-19 continues to weigh on demand for building work, and constructors have turned more pessimistic about the outlook for activity over the coming year through growing fears of its impact on investment among businesses, households and local authorities alike. This suggests the pandemic's impact on the construction sector is set to linger on."
