Germany construction PMI unchanged in August, suggests sustained moderate growth

German construction output is likely to have further grown moderately in August, based on the latest survey data. Meanwhile, increase new business encouraged building firms to raise their workforce numbers and purchasing activity. The headline seasonally adjusted Purchasing Managers’ Index came in at 51.6 in August, unchanged from July and suggests sustained moderate growth in German construction output, said Markit Economics.

The growth in total industry output was underpinned by growth throughout all three monitored categories of construction activity. Civil engineering activity was the best-performing area and survey data hinted that over one-fifth of constructors noted a rise in civil engineering activity.

Commercial building activity returned to growth in August after a two-month period of decline. The pace of rise was moderate and similar to that observed for civil engineering. Even if residential building activity continued to expand, the growth rate was the slowest since October 2015.

The data for August underlined a return to new order growth in the country’s building sector, after contracting for two straight months.  The pace of expansion in new business, while moderate overall, was the strongest since February and attributed to the securing of certain new major projects and a positive economic environment. With new business rising, firms were urged to boost their workforce figures in August. The pace of job creation reached a five-month high.

The purchasing activity also rose in the month. Meanwhile, the extent of positivity towards the 12-month outlook for activity rebounded since July. Certain panellists commented on increasing new order intakes.