FX.co ★ German Construction Downturn Eases in April

In April 2025, the HCOB Germany Construction PMI climbed to 45.1, up from March’s 40.3, marking the highest level in over two years. This suggests a significant easing in the sector's downturn and represents the mildest contraction since the second quarter of 2023. While overall activity remained in decline, the rate of decrease notably softened across the housing, commercial, and civil engineering segments. The reduction in new orders also lessened sharply, with the demand index reaching its highest point since early 2022, despite persistent challenges posed by high prices and customer uncertainty. Business expectations saw a slight dip from March's 37-month peak but continued to be relatively positive. For the 13th time in the last 14 months, delivery times for materials showed improvement. However, job cuts accelerated anew following a brief lull in March, though reductions in purchasing and subcontractor employment further eased. Regarding costs, input price inflation hit a 14-month high, remaining moderate by historical standards.