German Construction Activity Declines Most In 13 Months

(RTTNews) - Germany's construction activity contracted at the sharpest pace in 13 months in March as Middle East tensions impact overall industry performance, survey data from S&P Global showed Thursday.

The construction Purchasing Managers' Index fell to 42.1 in April from 48.0 in March. The score was the lowest since March 2025.

Work on residential projects declined at a much quicker rate than seen in the prior month. Commercial activity posted its steepest fall in 17 months, while civil engineering activity remained virtually unchanged.

The survey showed a slump in demand and input cost inflation surged to its highest in almost four years. Moreover, supplier delivery times lengthened in part due to shortages of materials.

There was a sharp and accelerated decline in purchasing activity. Firms scaled back their workforce numbers and the pace of job shedding accelerated sharply since the previous survey period.

Finally, sentiment among builders sank sharply to the lowest since December 2024. Respondents cited potential headwinds to demand from rising inflation, higher interest rates, weakness in the broader economy and elevated levels of uncertainty.