Germany May construction PMI 45.4 vs 46.0 prior

• Prior 46.0

The downturn in the German construction sector continues as rising prices, material shortages and economic uncertainty weigh on activity and sentiment. S&P Global notes that:

“Business conditions for construction companies in Germany remained challenging in May, with firms not only having to contend with long-running supply issues, but also a marked decline in new orders as economic uncertainty, sharply rising building costs and higher borrowing rates all serve to dampen demand.

"Building costs continued to skyrocket in May, with the rate of 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 in prices paid for materials and products creeping closer to last year's record highs, and subcontractors also able to charge markedly higher fees. That's despite construction companies reining in their labour requirements in the past couple of months, with a lack of availability of specialists in the market meaning they were still able to hike charges at a near record rate.

"Constructors are expecting these challenging conditions to persist in the coming year, leading to the gloomiest forecasts for future activity since the first wave of the pandemic more than two years ago."