Germany’s construction sector continued to decline in April, survey data from IHS Markit showed on Thursday.
The Purchasing Managers’ Index for the construction sector fell to 46.2 in April from 47.5 in March. Any reading below 50 indicates contraction in the sector.
Commercial activity weakened sharply in April and civil engineering work dropped dramatically.
Inflow of new works declined further in April and average lead times on building materials lengthened.
Expectation for the future declined to the weakest level thus far this year from a thirteen-month high in March.
Purchase prices accelerated in April and the overall rate of cost inflation rose to a record high.
Employment declined in April and the rate of job shedding was the quickest since November last year.
“April’s construction PMI survey produced another set of disappointing figures, showing the building sector still stuck in a slump amid a continued soft patch in order books,” Phil Smith, economics associate director at IHS Markit, said.