Germany December construction PMI 41.7 vs 41.5 prior

• Prior 41.5

German construction activity saw little improvement towards the end of last year, with overall conditions still deep in contraction territory. New orders fell sharply once again with residential activity also declining strongly in December despite input cost inflation retreating to a two-year low. S&P Global notes that:

“The construction sector, and especially housing activity, remained under pressure from a variety of factors during December. A toxic mix of spiraling prices, rising interest rates and a general lack of appetite for investment due to the uncertain economic outlook has led to a sustained drop in demand for construction work, with the effects seemingly having the greatest impact on residential building projects.

"Construction companies were downbeat about the outlook for activity in 2023, and more so than their counterparts in manufacturing and services. However, with a cap on energy prices coming into effect and a sustained sharp slowdown in the rate of input cost inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term to a two-year low suggesting the worst of the price pressures are in the past, expectations did improve further from last October's recent low."