Latest data released by Markit - 6 October 2021
- Prior 44.6
It's another subdued performance by the German construction sector as supply bottlenecks, capacity constraints and rising cost pressures are still weighing on overall activity and disrupting new orders. Employment conditions improved for the first time in eight months but that is perhaps the only bright spot in the report. Markit notes that:
"Supply bottlenecks, capacity constraints and rising costs all continued to take a toll on the German construction sector during September. Latest survey data showed ongoing sluggish trends in activity and new orders, as firms reported disruption from material shortages as well as a negative impact on demand from having to raise prices in line with higher costs.
"For some building companies, skill shortages remained an issue, with the survey indicating a sustained sharp decline in the availability of sub-contractors during the third quarter. Employment at constructors rose during the month, though only slightly.
"As well as reporting a record increase in rates charged by sub-contractors, the majority of building firms faced higher purchase prices for materials in September. However, the rate of input cost inflation has come down further from July's all-time peak, while the number of businesses reporting longer lead times on building materials and products has dropped from the highs in the second quarter. These trends provide tentative signs of supply beginning to catch up with demand."
