Germany July construction PMI 43.7 vs 45.9 prior

• Prior 45.9

The downturn in Germany's construction sector continues to deepen with the headline reading falling to a 17-month low. A further sharp decline in new orders was observed as high price pressures and rising economic uncertainty weigh on overall sentiment. S&P Global notes that:

“Things went from bad to worse for Germany's construction sector in July, with the decline in building activity gathering pace. The PMI data showed the steepest drop in total industry activity since building work was badly affected by severe wintry weather in February 2021, adding to the woes from the earlier manufacturing and services surveys.

"Concerns about the soaring cost of building work and rising interest rates have been compounded by the growing threat of a gas shortage, leading constructors' expectations for activity to drop to one of its lowest levels in over 20 years.

"Indeed, demand for building work has weakened considerably in recent months, with the economic environment becoming less and less conducive to investment spending.

"If there were any silver linings to be taken from the drop in activity and subsequent reduction in demand for building materials and products, then an alleviation of supply chain pressures and an associated reduction in the rate of input price 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 were perhaps two of them."