In June this year, Germany's construction sector indicated only a marginal decrease in construction output, remaining above the neutral 50.0 threshold, according to Markit's seasonally adjusted Germany Construction Purchasing Managers' Index (PMI). The index was at 50.7 in June, down slightly from May's reading of 50.8
In June, German constuctors reported a decline in new business, thereby ending a three-month run of expansion, while the rate of input cost inflation edged up fractionally and constructors remained optimistic toward the 12-month outlook for activity.
"German construction output continued to grow at a snail’s pace in June as another contraction in civil engineering activity continued to take the heat out of the recent upturn. Moreover, new orders fell for the first time in four months, which in turn led companies to reduce their workforce numbers for the first time in 2015 so far. The recovery in Germany’s building sector could put at risk if new order volumes remain depressed and activity growth slows even further," Oliver Kolodseike, economist at Markit, commented.