German Construction Sector Contracts At Slower Pace

Germany’s construction sector contracted at a slower pace in December, survey results from IHS Markit showed on Thursday.

The construction Purchasing Managers’ Index rose to 48.2 in December from 47.9 in the previous month. A score below 50.0 indicates contraction in the sector.

Among three broad categories monitored by the survey, civil engineering activity remained the weakest-performing segment. The decline in commercial activity also moderated, while work on residential projects fell at a marginal rate that was little-changed since November.

New work decreased at a moderate pace in December. Employment rose for the fourth consecutive month.

On the cost front, input price inflation remained elevated by historical standards but dipped to a nine-month low amid fewer reports of supply delays.

Concerns about rising prices, lingering supply-chain issues, and a lack of tender opportunities continued to dampen business confidence in December.