Germany's Construction Sector Shrinks At Slower Pace
The decline in Germany’s construction sector eased in July driven by the upswing in residential activity, survey data published by IHS Markit showed Thursday.
The construction Purchasing Managers’ Index rose to 47.1 in July from 41.3 in June. A score below 50 indicates expansion in the sector.
However, the reading signaled that the decline was the slowest since the current downturn began in March.
After a four-month sequence of decline, housing activity rose moderately in July. Activity elsewhere remained subdued, with both the commercial and civil engineering categories posting sustained contractions.
The Covid-19 pandemic and related uncertainty, continued to weigh on inflows of new work but the pace of decrease slowed in July. Likewise, the decline in job losses slowed for the third month.
Latest data showed a further modest rise in average prices paid for purchases in July. The rate of inflation ticked up for the first time in five months. Similarly, rates charged by subcontractors increased more quickly than in June.
Looking ahead, constructors remained downbeat about the outlook for activity over the next 12 months, citing greater caution among clients and squeezed budgets.
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