July construction PMI 42.1Prior 44.8
The construction downturn in Germany deepens in July, with firms recording further declines in total activity and new orders. The only bright spot was a renewed
expansion in civil engineering activity. Price pressures and delivery delays also eased in July but it’s too early to say with much confidence how that will change as uncertainty continues to persist in the Middle East.
The main drag continued to come from the housing sector,
which saw activity fall sharply and at the quickest rate
for three months. Meanwhile, work on commercial building projects
fell at an accelerated pace. The only sector to buck the trend was civil engineering, which recorded a renewed increase for the first time in three months.
Looking to the price front, the average prices paid for building materials and products
continued to exhibit a strong rate of inflation in July. However, at least the overall rate of increase slowed further
from April’s recent peak to its lowest since February. Firms continue to allude to elevated oil
prices and the knock-on effects on the cost of commodities
and fuel as key reasons for prices staying higher.
This article was written by Justin Low at investinglive.com.