Construction PMI 42.1Prior 48.0
That’s a rough one as the German construction sector slides deeper into contraction territory amid the fallout from the Middle East conflict. Surging energy prices is translating to higher price pressures and that in turn is weighing on overall activity on the month.
The steep fall in total activity at the start of the second
quarter was led by the housing sector but there was also a sharp decline in commercial activity too. Meanwhile, civil engineering activity was virtually
unchanged on the month but eases after growth in the last five months.
The latest data points to a sustained deterioration in demand
conditions across the German construction sector. And for the most part, higher costs are to blame. New orders declined at its quickest pace in over a year with firms reported a decrease in inflows of new work citing hesitancy among
customers, sluggish economic conditions and price pressures.
Of note, input cost inflation rose sharply again after its largest single-month
rise in the series history back in March. This time, the jump sees it climb to the highest since May 2022. That as the Middle East conflict is leading to higher prices of energy, fuel and
various commodities.
This article was written by Justin Low at investinglive.com.