2026.10.0607:42:17UTC+00Germany Construction Activity Falls at Faster Pace

The S&P Global Germany Construction PMI dropped to 43.5 in September 2026, down from August’s eight-month high of 48.7. The renewed slump in residential construction was a major drag on overall performance, with the housing sector posting its sharpest contraction since December 2024 after briefly showing signs of stabilizing in August. Commercial construction also faltered again following a short-lived return to growth, while civil engineering activity recorded a slight decline.

New orders continued to fall, though the rate of decline was the slowest seen in three months. Softer demand led construction firms to scale back purchasing activity and reduce staffing levels, with employment contracting at the fastest pace since April. At the same time, cost pressures picked up: both input prices and subcontractor charges rose at an accelerated rate.

Firms also continued to experience delays, although the lengthening of supplier delivery times was the least pronounced since last December. Looking ahead, constructors remained pessimistic about activity over the coming year.