empty
 
 

2020.10.0610:02:00UTC+00Germany Construction Sector Contracts Further

Germany's construction sector contracted further in September amid an ongoing decline in new orders and pessimistic expectations for activity over the year ahead, survey data from IHS Markit showed Tuesday.

The construction Purchasing Managers' Index fell to 45.5 in September from 48.0 in August. A score below 50 indicates contraction.

The main drag on total industry activity was from the commercial building sub-sector, where work fell sharply and at the fastest rate for three months.

Civil engineering activity also remained in negative territory, albeit with the pace of fall easing to the weakest since February. The only bright spot was housing activity, though the activity grew at the softest pace for three months.

New orders continued to decrease as clients were reluctant to commit to new projects amid the pandemic.

Companies continued to scale back workforce numbers and sentiment weakened for the first time in six months.

Turning to costs, data showed a slight uptick in the rate of purchase price inflation. There was a moderate increase in rates charged by sub-contractors.

Construction activity had looked to be stabilizing, so the drop in the PMI to a three-month low in September comes as a disappointment and shows the sector is not quite out of the woods yet, Phil Smith, principal economist at IHS Markit, said.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback