The German construction sector deteriorated at the steepest pace in just over three-and-a-half years in November amid a sharp fall in activity across all segments, especially housing projects, survey results from S&P Global showed.
The HCOB construction purchasing managers' index (PMI) dropped to 36.2 in November from 38.3 in October. Any score below 50 indicates contraction in the sector.
Among the three broad categories, housing activity remained the worst-performing sector in November on the backdrop of unfavourable market conditions, followed by the civil engineering segment, where activity fell the most since February 2021.
Civil engineering activity has contracted to the greatest extent since January.
New orders showed a sustained steep downturn in November amid highly unfavourable demand conditions, linked to the influence of elevated interest rates, high construction costs, and weakness in the broader economy.
German construction companies saw a reduction in purchasing activity in November, and the rate of contraction was the fastest since February 2010.
Due to falling construction input demand, supply chains were eased, resulting in shorter lead times.
On the price front, input prices continued to decline in November, though the pace of the fall eased from September's recent record.
Constructors' expectations for future activity remained historically low and even fell slightly since October.
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