In May this year, Germany's construction sector PMI indicated a decrease to 52.7 from 53.4 recorded in April, decreasing to a six-month-low, according to Markit's seasonally adjusted Germany Construction Purchasing Managers' Index (PMI).
German constructors reported ongoing growth of both output and new orders during May, although rates of expansion slowed in both cases. Nonetheless, companies were encouraged to raise their buying activity and workforce numbers further. Meanwhile, average lead times on inputs lengthened markedly and input costs rose at the fastest pace in ten months.
“The upturn in Germany’s building sector lost further momentum in May, with companies reporting the weakest expansion of construction activity for half a year. Moreover, new business growth slowed to only a fractional pace, but it should be noted that the current six-month sequence of rising new order intakes is the longest on record. Although today’s numbers send a note of caution, it seems as if the sector will have a positive contribution to economic growth in the second quarter,” Oliver Kolodseike, economist at Markit, commented.