Markit's seasonally adjusted Purchasing Managers’ Index (PMI) showed Germany's construction activity index fell further from high of 55.8 in March to 53.4 in April. Germany's construction activity rose at slowest pace in five months and siganlled slower growth in April. The index was still indicative of moderate growth of German construction output at the start of the second quarter.
Details showed that German companies reported further increases in new business and employment. Incoming new orders have now risen for five months running, supporting ongoing growth. Additions were reported to payrolls, but the rate of employment growth slowed to a five-month low.
Degree of optimism for the next 12-months was highest since March 2006. German building companies expect activity at their units to increase. The rate of inflation was the strongest in four months, but remained below the long-run series average.
“Latest survey results signalled that the upturn in Germany’s construction sector is down but not out at the start of the second quarter. It looks likely that the sector will continue to experience favourable conditions in coming months, with constructors the most optimistic about their future prospects since 2006, underpinned by rising new business and sustained job creation.” said Oliver Kolodseike, economist at Markit.
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