Germany's construction PMI slumps, outlook remains pessimistic

The HCOB Germany Construction PMI dropped to 40.2 in October 2024, down from 41.7 in September, signaling a sustained and sharp downturn in the sector.

Germany's construction PMI slumps, outlook remains pessimistic

The data highlighted faster declines in construction activity and new orders, with firms continuing to reduce their workforce in response to weakened demand. The results point to growing challenges in the sector, which has been grappling with a slowdown in investment and projects. On the cost front, however, pressures eased slightly as both purchase prices and subcontractor rates fell at an accelerated pace.

Firms' future expectations remain pessimistic amid construction stagnation

Despite this, firms' expectations for the future remained deeply pessimistic, reflecting concerns about prolonged stagnation in the construction industry.