Germany April construction PMI 46.0 vs 50.9 prior

• Prior 50.9

The reading is an 8-month low as construction activity slumped amid a combination of falling demand and severe supply-side pressures. Overall activity declined for the first time in four months as firms reported the steepest decline in new orders for two years. Supply chain issues continue to be a major factor as constructors noted particular difficulty sourcing steel and insulation. S&P Global notes that:

“Construction activity in Germany has started to buckle under the pressure from supply bottlenecks, sharply rising prices and economic uncertainty, all of which have been compounded by the war in Ukraine and contributed to a considerable drop in demand for building work at the start of the second quarter.

"Latest PMI data showed activity levels falling across each of the main areas of construction in April, led by a steep downturn in work on commercial projects. With the survey indicating the steepest fall in construction new orders for two years, the outlook for activity, at least in the near-term, looks bleak.

"Indeed, constructors' expectations have slumped to their lowest since the initial COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term shutdowns in the spring of 2020, reflecting concerns over headwinds to both supply and demand. "Rising costs are posing a serious challenge to constructors, who are torn between trying to protect margins by passing on some of the burden and not pricing out their clients."