In May this year, Germany's construction sector indicated only a marginal rise 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 50.8 in May, down from April's reading of 51.0
In May, German constructors continued to add to their payrolls and increased their purchasing activity further, after the fourth consecutive month-on-month increase, while the input cost inflation was the highest in nearly one-and-a half years and optimisim towards the 12-month outlook for activity fell slightly.
"Output growth in Germany's construction sector was maintained in May, according to the latest set of PMI results. However, the pace of expansion was only marginal overall, as companies reported a sharp drop in civil engineering activity. Nevertheless, companies reported that a low interest rate environment helped secure new business, thereby supporting the view that output growth is likely to be maintained in the near-term," Oliver Kolodseike, economist at Markit, commented.