Germany February construction PMI 48.6 vs 43.3 prior | Forexlive

• Prior 43.3

An improvement in German construction activity points to a shallower contraction in February, helped by the fact that input cost inflation fell to a 27-month low. New orders continued to fall though, albeit at a slower pace. S&P Global notes that:

“February’s PMI showed the German construction
sector take a step towards stabilisation, with the decline
in total industry activity easing to only a modest pace
that was the weakest in the current 11-month sequence
of contraction. Underlying data showed a more positive
month for civil engineering, albeit with the rise in activity
coming off the back of a sharp downturn in prior months.

“Demand for building work remains strained by elevated
prices and tightening financing conditions, although it’s
encouraging to see that the rate of decline in new orders
has at least slowed and that firms are now far less
pessimistic about the outlook than they were just a few
months ago.

“Easing cost pressures were a key feature of the latest
survey data, with building firms having faced ultra-high
rates of input price inflation over the past two years.
Latest data showed construction sector costs rising
at the slowest rate since November 2020, and one that
was even slightly lower than the pre-pandemic series
average, amid indications from the survey of reduced
supply-demand imbalances.”