German Construction Sector Continues To Shrink

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Germany’s construction sector continued to contract in November amid uncertainty caused by the pandemic and fewer public sector tender opportunities, survey data from IHS Markit showed Friday.

The construction Purchasing Managers’ Index rose to 45.6 in November from 45.2 in the previous month. This was the highest since August.

However, the score has been below the 50 no-change threshold for the ninth straight month indicating contraction in the sector.

Housing activity remained the sector’s bright spot, with work on residential projects increasing for the fifth consecutive month in November. This contrasted with ongoing weakness in both commercial and civil engineering activity, with these two categories exhibiting similarly steep rates of decline.

Phil Smith, associate director at IHS Markit, said “After back-to-back contractions in the second and third quarters, German construction activity still looks to be stuck in a downturn as we approach the end of the year, according to these latest PMI results.”

The material has been provided by InstaForex Company – www.instaforex.com

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