In July this year, Germany's construction sector PMI indicated a decrease to 50.0 from 53.0 recorded in June, decreasing to a four-month-low, according to Markit's seasonally adjusted Germany Construction Purchasing Managers' Index (PMI).
Additionally, the seasonally adjusted Germany Construction PMI fell below the average recorded over the first half of the year (52.9). In July, growth of construction activity in Germany came to a halt and growth in commercial and housing activity.offset by downturn in civil engineering work. Meanwhile, new orders recorded a slight increase month-on -month. The sharp increase in purchasing costs is attributed to new road tolls and higher demand for building materials.
“Constructors continue to look to boost employment numbers; however, an ever-tightening labour market has seen the pace of hiring drop off in recent months and the availability of subcontractors also continues to worsen. Supply chains are meanwhile struggling under the pressure from higher demand for building materials and components, with constructors noting the worst delivery delays for eight months in July.” Phil Smith, principal economist at Markit, commented.