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2019.07.0407:28:00UTC+00German Construction Stagnates In June

Germany's construction sector stagnated in June, ending the sequence of expansion seen over the past seven months, survey data from IHS Markit revealed on Thursday.

The construction purchasing managers' index, or PMI, fell to the neutral mark of 50.0 in June from 51.4 in May.

Among sub sectors, commercial work grew for the fifth straight month in June. Civil engineering declined for the third month in a row along with housing.

New orders fell for the second straight month in June. Employment rose further in construction companies for the fourth year.

Suppliers' delivery time lengthened with higher demand in building materials and products. The rate of purchasing price inflation rose slightly after easing in the previous month.

Constructors remained optimistic about the outlook for activity for the next twelve months in June, the survey reported.

"The past two months have also seen a correction in new work as firms report already high workloads and constrained business capacity," Phil Smith, principal economist at IHS Markit, said.

Separate surveys from IHS Markit showed that the Eurozone construction PMI rose slightly to 50.8 in June from 50.6 in May.

France's construction PMI grew to 51.9 in June from 50.3 in the previous month, rising at the fastest pace since the beginning of the year.

Italy's construction PMI expanded to 50.7 in June from 49.8 in the preceding month.

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