Germany’s construction sector growth softened in September, data from IHS Markit showed Thursday.
The headline Purchasing Managers’ Index dropped to 53.4 in September from 54.9 in August. Nonetheless, a reading above 50 indicates expansion.
The score signaled a solid expansion in the sector, albeit the softest in eight months, IHS Markit said.
Among sectors, both commercial and civil engineering saw a solid increase in output levels. Meanwhile, housing activity grew at a moderate rate that was the softest in 13 months.
Although new orders expanded at a solid rate, growth was the weakest in three months.
Further, data showed that job creation among construction firms was marked in September, with the pace of expansion accelerating to the fastest since February 2016.
On price front, survey revealed that input costs increased at a steep pace and was largely attributed to higher raw material prices and supplier delays.
Construction firms reported that sub-contractor charge inflation reached a series high, driven by squeezed availability.
Business confidence was subdued in September, with optimism the lowest in ten months.
Source: RTT News