Germany March construction PMI 50.9 vs 54.9 prior

• Prior 54.9

German construction activity sees a notable slowdown as the Russia-Ukraine conflict impacts demand, prices and supply with new orders falling and input cost rising. The slowdown was led by the residential sector, though work on commercial projects also eased. S&P Global notes that:

“After an excellent start to the year, the construction sector lost momentum in March, with the headline PMI dropping sharply from February's two-year high and signalling a near-stalling of activity growth.

"A number of the survey's indicators point to the war in Ukraine as having had a detrimental impact on the construction sector's performance, including a drop in new orders amid increased hesitancy amongst clients, as well as renewed pressure on both supply chains and prices.

"Material shortages and supply delays have worsened notably in the past month, and this extra imbalance between supply and demand, alongside the surge in energy prices, has caused the rate of 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 accelerate sharply and closer to last year's record highs.

"These recent developments have exacerbated constructors' pre-existing concerns about elevated prices and supply bottlenecks. Expectations towards future activity have slumped to their lowest in almost two years, as firms anticipate a tougher task securing new work."