Latest data released by Markit - 4 September 2020
- Prior 47.1
The falls in output and employment continue to show signs of easing but new orders continue to remain subdued and that is still largely weighing on construction activity in the month of August. Markit notes that:
"The construction data are steadily moving in the right direction, with the PMI indicating that the sector is now on a more stable footing after the slowdown during the spring and summer.
"Activity is largely being held back by slower inflows of new work, which was more often than not linked by surveyed businesses to the pandemic, and its impact on clients' spending decisions and budgets. Although building firms are far less worried about the outlook than a few months ago, they still expect activity to be suppressed well into next year. This will continue to hurt job prospects across the sector until businesses begin to see a pick-up in new work that requires them to start hiring again.
"Low price pressures are a theme across Germany right now due to a degree of slack in the economy, and this is also seen in the construction sector due to historically subdued rates of inflation in purchase prices and sub-contractor fees."
