Germany’s construction activity expanded at the weakest pace in ten months in June, survey figures from Markit Economics showed Wednesday.
The construction Purchasing Managers’ Index, or PMI, fell to 50.4 in June from 52.7 in May. However, any reading above 50 indicates expansion in the sector.
Although construction activity grew for the seventeenth consecutive month, the latest expansion was only marginal.
Among categories, civil engineering activity declined further in June, which was the most marked since August 2015. Commercial activity decreased for the first time in seventeen months.
At the same time, residential building output advanced for the twenty-first month running in June.
New business received by the German constructors broadly stagnated in June. In contrast, firms raised their workforce numbers during the month.
This resulted further increase in purchasing activity, but the rate of growth eased to a seven-month low.
On the price front, input price inflation accelerated to the strongest since May 2012, driven by higher steel prices and raw material shortages.
“Although housing shortages and the inflow of refugees should help maintain growth of residential building activity in the near-term, companies were the least optimistic about their future since the end of last year,” Oliver Kolodseike, economist at Markit, said.
The material has been provided by InstaForex Company – www.instaforex.com