Germany August construction PMI 42.6 vs 43.7 prior

• Prior 43.7

German construction activity continues to slump further, with the contraction at its quickest pace in a year-and-a-half. A sustained drop in new orders was observed as high prices, increased interest rates and economic uncertainty all weighed on demand for construction work. S&P Global notes that:

“Latest PMI data showed output levels across Germany's construction sector falling for a fifth straight month in August, with the headline total activity index dropping even further into sub-50 contraction territory to show the sector's worst performance for a year-and-a-half.

"Commercial activity continued to lead the decline, but the trends in both housing and civil engineering were not much better, with each category seeing a notable downturn.

"Construction activity has fallen on the back of a sustained reduction in demand, with firms reporting that high prices, increased borrowing costs and uncertainty among clients has made it more difficult to secure new work.

"The decline in new orders did ease somewhat, whilst there were further moderations in both cost and supplychain pressures, all of which perhaps helps explain the less slightly pessimistic outlook among constructors. Nevertheless, constructors are expecting conditions to remain extremely challenging over the coming year and have continued to scale down both workforce numbers and purchasing activity accordingly."

/EUR EUR The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value The euro (EUR) is the official currency of the European Union (EU) and 19 of 27 member states at the time of writing. It is the second most-traded currency worldwide in forex markets after the US dollar.The euro was originally introduced back on January 1, 1999, having replaced the European Currency Unit. Banknotes and physical euro coins subsequently entered circulation only in 2002.Upon its adoption, the euro replaced domestic currencies in participating EU member states. The rise in its value Read this Term