Germany’s construction activity registered back-to-back decreases in February following a moderate growth towards the end of 2025, monthly survey from S&P Global showed on Thursday.
The HCOB construction Purchasing Managers’ Index fell to 43.7 in February from 44.7 in January. This was the lowest score since last October. Moreover, a score below 50.0 indicates contraction.
Housing activity contracted sharply and at the steepest pace in three months. Commercial activity also fell markedly. On the other hand, civil engineering activity expanded for the fourth straight month.
“Overall, the deterioration in the construction sector is also related to the relatively harsh winter, which is likely to have contributed to job losses after more staff had been hired in the previous months,” Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
The economist observed that the war in the Middle East, which has propelled oil prices higher, does not bode well for inflationary pressures in the near future.
Companies reported a renewed fall in employment and an accelerated reduction in purchasing activity. Demand for construction materials eased in February but firms reported a fifth successive rise in supplier delivery times.
Purchase price inflation rose to its highest since last September. Business expectations were upbeat and hit the strongest in six years despite the current challenges.
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