Germany November construction PMI 41.5 vs 43.8 prior

• Prior 43.8

The reading highlights a deepening contraction in Germany's construction sector, led by shrinking housing activity. Firms were reportedly extremely pessimistic about the outlook for the year ahead, amid a backdrop of high inflation, rising borrowing costs and reluctance among customers. S&P Global notes that:

“The current economic environment of high prices, rising interest rates and weak sentiment is weighing heavily on the construction sector's performance. The downturn in new orders, which started in March following Russia's invasion of Ukraine, extended into November and showed little signs of easing.

"Housing activity is being hit hardest by the various headwinds to demand, registering a rate of contraction in November that was the quickest since April 2009 if brief weather-related downturns are excluded. Work on civil engineering projects also fell sharply during the month, while commercial activity went against the grain and showed a steadier trend after its summer slump.

"Constructors maintained a very gloomy outlook for the next 12 months and, as such, pressed ahead with further cutbacks to workforce numbers during November, albeit at a slower rate than in each of the previous three months.

"Expectations came off October's near-record low, however, helped in part by a slowdown in input price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and signs of easing supply bottlenecks."