Latest data released by Markit - 6 July 2020
- Prior 40.1
Not much of an improvement as German construction activity remains mired in a downturn, as activity falls for a fourth straight month. Of note, new orders declined further with the pace of decline showing little change compared to that of May.
Construction sentiment improved from the lows seen in April but remains downbeat for the most part, with job cuts still continuing even as activity is seen picking up slightly.
Markit notes that:
"The PMI data suggest that, while less affected by the COVID-19 pandemic than either the manufacturing or service sectors, construction activity has slowed down over the past four months, with June seeing little signs of a pick-up outside of the residential category.
"Surveyed businesses have reported that clients are more reluctant to place new business due to the current uncertain climate. As such, constructors remain cautious about the outlook for activity, and towards work on commercial projects such as retail outlets, office space and manufacturing plants in particular.
"After more than four-and-a-half years of continuous job creation in the sector we've seen a period of retrenchment as constructors looked to trim payroll numbers amid lower workloads and concerns towards to the outlook."
