Germany October construction PMI 43.8 vs 41.8 prior | Forexlive

• Prior 41.8

There’s a slower decline in German construction activity last month but still a decline nonetheless. Overall conditions are still poor as costs continue to soar as input price inflation pushes higher. Meanwhile, business confidence is seen slumping to its second-lowest on record. S&P Global notes that:

“October’s construction survey produced another set of dismal results, not least showing a further drop in business confidence to the second-lowest on record as building firms faced growing challenges around both supply and demand.

“On the supply-side, material shortages remain an issue, while the soaring cost of energy has exacerbated price pressures across the sector. “With prices already sky-high and still rising, increasing borrowing costs and the uncertain economic outlook have put a further squeeze on demand and dampened the outlook for the building sector.

“According to the PMI surveys, construction is one area where we’ve already seen some staff shedding, and the decline in employment continued into October.

“The extent of the downturn in total industry activity eased somewhat in October, but with the economy appearing to be heading for recession over the winter, it’s likely that further weakness lies ahead.”