German Construction Sector Downturn Deepens

(RTTNews) - Germany's construction sector contracted notably in September, led by a steep reduction in work on housing projects, survey data from S&P Global showed Tuesday.

The construction Purchasing Managers' Index fell to 43.5 in September from an eight-month high of 48.7 in the previous month. A score below 50.0 indicates contraction.

There was a notable drag from renewed weakness in housing activity. Housing activity recorded its biggest decline since December 2024. After a brief return to growth, commercial activity contracted in September. Work on civil engineering activity fell only fractionally.

Inflows of new work decreased markedly but the rate of decline was the slowest in three months. Reduced workloads led constructors to reduce their workforce numbers and purchases of building materials. Employment decreased the most since April.

Average purchase prices registered the steepest increase since June. Rates charged by subcontractors rose sharply and at the fastest rate in three months.

The degree of lead times lengthened at the least marked pace since last December. Finally, constructors expected activity levels to fall in the coming year.