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Construction PMI in Germany hits nine-month high

Staff Writer | January 6, 2017
Growth of Germany’s construction sector gathered speed in December, with activity rising to the greatest extent in nine months.
Construction Germany
Business in Germany   Markit Germany Construction PMI
Higher new work was a key factor behind the expansion – the latest increase was the second-quickest on record.

Improving order books also contributed to sharper growth of employment and input buying. Meanwhile, cost pressures intensified, with input prices and sub-contractor rates both rising sharply.

At 54.9, up from 53.9 in November, the headline seasonally adjusted Purchasing Managers’ Index (PMI) pointed to a sharp and accelerated rise in output during December.

The latest expansion was the quickest in nine months, with the fourth quarter average (53.9) being the highest since the first three months of 2016. Activity growth was broad-based by category.

Housing activity rose quickest, followed by commercial building output. Civil engineering posted only modest growth, but the rise ended a two-month sequence of decline.

A solid expansion of new work helped German constructors to raise output in December.

After having fallen just two months earlier in October, new orders rose at the second-fastest rate since the survey started in 1999. The rate of growth was only slightly below February’s record.